COVID Self Employed2020-05-05T09:52:32+00:00

Support for Self Employed

The coronavirus (COVID-19) Self-employment Income Support Scheme, will allow the self employed to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months.

From 5th May, HMRC will begin contacting people who may be eligible for the Self-Employment Income Support Scheme. You do not need to contact HMRC.

Are you eligible?

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

Your self-employed trading profits must also 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.

If you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it. 

How much will you get?

If you are eligible you will receive a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

HMRC will add together the total trading profit for the 3 tax years and divide by 3 (where applicable) to calculate an average monthly amount. The grant will be capped at a maximum of £2,500 per month for 3 months. The scheme may be extended if needed.

Once the grant is available and you have successfully applied, the grant will be paid directly into your bank account, in one instalment.

FIND OUT MORE

Further Support

If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme.

Find out more