UPDATE: 6th May 2020
The government has made available a new tool which allows you to check if you are eligible to make a claim through the Self-Employment Income Support Scheme. Your tax agent or advisor can also use the tool to check on your behalf.
To use the tool, you will need your:
- Self-Assessment Unique Taxpayer Reference (UTR) number
- National Insurance number
The Government has launched a scheme for the self-employed to help them during this difficult time. We recognise that you will know colleagues, family, and friends who are self-employed and therefore we wanted to provide you with further information to assist.
Coronavirus (COVID-19) Self-employment Income Support Scheme
This scheme will allow the self-employed to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
You can apply if you’re a self-employed individual or a member of a partnership and you:
- have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
- traded in the tax year 2019-20
- are trading when you apply, or would be except for COVID-19
- intend to continue to trade in the tax year 2020-21
- have lost trading/partnership trading profits due to COVID-19
Also, your self-employed trading profits must be less than £50,000 and more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
- having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
- having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
How to apply
HMRC will use data on 2018-19 returns already submitted to identify those eligible and contact you if you are eligible for the scheme and invite you to apply online.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.
Information, guidelines, and rules are changing rapidly, and you should seek independent confirmation before acting. The official Government web page is here, but we will keep you posted with any significant changes.
As always, if you would like to discuss anything please feel free to get in touch.