Update – 22nd April 2020
COVID-19
Update 22 April 2020
Self-Employment Income Support Scheme
UPDATE – HOW TO CLAIM
How do I Claim?
HMRC will aim to contact you by mid May 2020 if you are eligible for the scheme and invite you to claim using the GOV.UK online service.
Do I need a login?
If you don’t already have one, the self employed can register for an online account here.
https://www.gov.uk/personal-tax-account
What if I haven’t heard from them by mid-May?
HMRC specifically ask at this point not to contact them whilst they work on the system. As we get closer to the mid May, they may then provide dates in which you can contact them if you haven’t heard but we don’t know at this time.
I don’t have access to claim online what do I do?
If you are unable to claim online an alternative way to claim will be available. We await further updates on this.
Will the income be backdated to 1 March mirroring the Job Retention Scheme?
It will be available for three months but may be extended.
Previous Info and FAQ published in earlier updates on this initiative is outlined below
What is available?
A grant to self-employed individuals or partnerships, worth 80% of their trading profits up to a cap of £2,500 per month. This is based on your average profits for the three years ended 2018-19. The scheme is open to anyone who has
Suffered a loss of income due to COVID-19,
Whose average profits are less than £50,000 per year and
Earns the majority of their income from self-employment.
This scheme is open for three months initially and will be extended if required.
When?
They think first payments will be early June. This will be paid in one instalment and cover the period of the three months to May.
FAQ
What if I only just started self-employment?
If you don’t have a tax return for 2018-19 then you will not be eligible for this scheme.
Check to see if you are eligible for universal credit – whilst the applications may take 5 weeks, they are currently making advance payments which can be available in days. The rules have changed on Universal Credit so please check the government website.
What if my profits exceeded £50,00 in one of the last three years?
The scheme looks at an average over the three years so as long as the average falls below £50,000 you will qualify.
I am getting no income now what am I supposed to do between now and June?
Check to see if you are eligible for universal credit – whilst the applications may take 5 weeks, they are currently making advance payments which can be available in days.
If you are not eligible for this, you may want to speak to your bank about a temporary overdraft to see you through until the June payments are made. Banks are being flexible in terms of reduced fees at present, so this is a good place to start. However, review what you expect your income to be from this scheme before you commit to any further debt.
Can I still earn money and apply for this?
Yes
I traded for the last three years but have recently ceased and am looking for employment – do I qualify?
No, you not only have to have traded in 2018-19 but must be currently trading and planning to trade in 2020-2021.
I still haven’t filed my 2018-19 tax return – what should I do?
If you file it by 23rd April this will be taken into account when assessing your eligibility and income.
Government Link https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
For copies of our previous updates please e-mail either
Previous updates
18 March, 19 March, 21 March, 24 March, 26 March, 27 March, 6 April,9 April, 10 April
This article is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or taking professional advice. The authors and the firm cannot accept any responsibility for loss arising from any person acting or refraining from acting on the basis of the material included herein.
