COVID-19 - How different circumstances affect the Self-Employed Income Support Scheme


HOW DIFFERENT CIRCUMSTANCES AFFECT THE SELF-EMPLOYMENT INCOME SUPPORT SCHEME


Added 16 June 2020


The Self-Employment Income Support Scheme currently allows you to claim a taxable grant worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.

If you are self-employed or a member of a partnership, find out how your circumstances can affect your eligibility for the scheme.

If you are eligible you must make your claim for the first grant on or before 13 July 2020.

This scheme is being extended.

Different circumstances may affect your eligibility.

How the grant works 

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant does not need to be repaid but will be the subject to Income Tax and self-employed National Insurance.

HMRC will work out if you are eligible and how much grant you may get.  But you can follow these steps to help you understand how they will do this and what you can do now.

To work out your eligibility HMRC will first look at your 2018 to 2019 Self-Assessment tax return.  Your trading profits must be no more than £50,000 and at least equal to your non-trading income.

If you are not eligible based on the 2018 to 2019 Self-Assessment tax return, they will then look at the tax years 2016 to 2017, 2017 to 2018 and 2018 to 2019.

Find out how HMRC will work out your eligibility including if they have to use other years here:  

https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme 

Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa. 

! You must make the claim yourself.  Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC.  This will cause a significant delay to you receiving your payment.

How different circumstances affect the scheme:

Check if your circumstances affect your eligibility for the following situations:

- if your return is late, amended or under enquiry
- if you are a member of a partnership
- if you are on or took parental leave
- if you have loans covered by the loan charge
- if you claim averaging relief
- if you are non-resident or chose the remittance basis
- state aid
- adversely affected examples  

See: https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme 


Take care, stay safe.