On 12th June an update was announced on changes to the Self-Employment Income Support Scheme.
Here is our summary of these changes:
About the scheme
In line with our previous update, the Government is offering a taxable grant to those who are either self-employed or a member of a partnership. Currently, this grant is worth 80% of your average monthly trading profits.
The grant is being given as a single payment which covers three months’ worth of profits but is capped at £7,500.
Can I still work if I am successful?
If you receive the grant you are still allowed to work. You can also start a new trade, take on other employment including voluntary work.
What are the changes?
With the scheme extension has come a few changes to the second grant.
It will be another taxable grant, this time worth 70% of your average monthly trading profits. You will still receive the full amount covering three months’ worth of profits in a single payment, but this time the cap will be less at a maximum of £6,570.
This will be the last grant in the scheme.
You can apply for the second grant in the scheme if you did not make a claim for the first one.
Check online today to find out if you are eligible. You will need the following to hand before you get started:
- Self Assessment Unique Taxpayer Reference (UTR) number
- Your National Insurance number
What makes me eligible?
You will be eligible to claim if you’re a self-employed individual or a member of a partnership, but all of the following must apply to you:
- You traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
- You traded in the tax year 2019 to 2020
- You intend to continue to trade in the tax year 2020 to 2021
- You carry on a trade which has been adversely affected by coronavirus
- The majority of your income is from your sole trade business/partnership
Examples of how your business could be considered to be adversely affected by coronavirus:
You’re unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
You’ve had to scale down or temporarily stop trading because:
- your supply chain has been interrupted
- you have fewer or no customers or clients
- your staff are unable to come into work
How do I apply?
You can still apply for the first grant in the scheme. If you wish to make a claim, you can do so on or before 13th July 2020. Go to the government website to make your claim, or get in touch with our team if you need further guidance.