Self-Employment Income Support Scheme

Government Support for your Business
Updated 17th August 2020

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

What do you need to know…

  • Two separate taxable grants are claimable:
    • First grant for the period ending 13 July 2020
    • Second grant for the period from 14 July 2020
  • The 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 over the three years 2016/17, 2017/18 and 2018/19* for the first 3 month grant claim, reducing to 70% of the same average profits for the second three months.
  • 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.
    • Who have been adversely affected by the Coronavirus crisis.
  • 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.

  • You do not have to have claimed the first grant to be able to claim the second.

Claims for the the second grant commence on Monday 17 August 2020, with the first payments arriving within 6 working days of claims being made.

The deadline for claiming under the first round was 13 July 2020. Claims for the second round of grants at the lower rate need to be made by 19 October 2020.  

Eligibility…

You are self-employed and you:

  • Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19 on or by 23 April 2020.
  • 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 one or both of the grants, only if your business is ‘adversely’ affected by the Coronavirus.’ To claim the second grant your business must have been adversely affected on or after 14 July 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.

Restrictions on you personally:

  • You have been ill or self-isolating or shielding.
  • You have had to care for others and this disrupted your work.

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

Tip!!!
Make sure you have access to your government gateway account now

How can AOR can help you…
We can help you work out if you are eligible
Work out how much you can claim
We can help you set up a government gateway account

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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