Self-Employment Income Support Scheme

Government Support for your Business
Updated 30th November 2020

This scheme has been extended to continue to support self-employed businesses whose trade has been adversely affected due to Covid-19. 

If you were not eligible for the first and second grant based on the information in your Self Assessment tax returns, you will not be eligible for the third.

What do you need to know…

  • Third grant for the period 1 November to 29 January 2021 
  • The 3rd grant payable is the lower of:
    • £7,500 (if claiming for the first grant), or £6,570 (if claiming for the second grant) and
    • 80% of your average monthly profits 
  • The grant is available to self-employed individuals with trading profits up to £50,000 per year whose majority of income comes from being self-employed.
  • You must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021.
  • You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.
  • If you receive the grant you can continue to work or take on other employment including voluntary work.

  • The grant is taxable but NOT repayable.

Claims for the the third grant commence on Monday 30 November 2020, with the first payments arriving within 6 working days of claims being made.

The deadline for claiming under the third round is on or before 29 January 2021.   

Eligibility…

You are self-employed and you:

  • Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19.
  • Have 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. You should keep records to support this.
  • Average self-employed trading profits between £0 – £50,000.

Additionally, more than half of your total income comes from self-employment.

You can claim only if your business is ‘adversely’ affected by the Coronavirus.’ To claim the third grant your business must have been adversely affected on or after 1 November 2020.

Your business may be adversely affected if any of the following apply:

Restrictions on trading:

  • Government orders have meant that your trade or industry had to close or to be restricted in such a way that your trade closed or is otherwise adversely affected.
  • You cannot organise your work or workplace to allow your staff to work safely.
  • You cannot serve customers due to social distancing.
  • Restrictions have affected your customers or staff.
  • Your supply chain is interrupted due to shortages of product, PPE etc.
  • One or more of your contracts have been cancelled.
  • You have fewer or no customers or clients.

Note the following…

If you have several different income sources, i.e. you run a marketing agency and rent out a property. Your income from the business must be greater than 50% of your total income

If you normally engage an accountant to submit your tax return for you, HMRC have advised they cannot make the SEISS claim on your behalf.

How can AOR can help you…
We can help you work out if you are eligible
Work out how much you can claim

As ever, Adams O’Rourke are here if you need any further assistance regarding Covid-19 business support. Click here to get in touch with us.
Take care everyone!

Further Info

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

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