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COVID19: Claiming the self-employment grant scheme

4 May 2020: The government have today updated information about applications for the self-employment grant. Self-employed workers have been hit hard by COVID19 lockdowns, the scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months (March to May), and capped at £7,500 altogether. This is a temporary scheme, but Gov.UK suggest it may be extended.

How do you claim for the self-employment grant scheme?

The claim procedure is not yet available but HMRC aim to contact relevant individuals by mid-May 2020 to invite claims, and payments will be made by early June 2020 (within 6 working days of a valid claim being made).

The guidance states:

YOUR TAX AGENT OR ADVISER CANNOT MAKE THE CLAIM FOR YOU

In order to make the claim, you will need to use the GOV.UK online service and will need to provide:

  • Self-assessment UTR number
  • National insurance number
  • Government Gateway user ID and password
  • Bank account number and sort code and
  • Confirmation that the business has been adversely affected by coronavirus.

Are you eligible for the self-employment funding?

Claims can only be made where most of your income is from self-employment and where your business was operating during the years ending 5 April 2019 and 2020, and expecting to continue in the year ending 5 April 2021, and has been adversely affected by coronavirus. 

How much will the self-employment scheme pay?

The self-employment grant scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but Gov.UK suggest it may be extended.

Can you continue to work if you receive the self-employment grant?

Yes, you may receive the grant and 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 will be subject to Income Tax and self-employed National Insurance.

There is other support available if you’re not eligible for the grant.

HB Accountants will bring you updates as soon as we know more.

The team at HB Accountants will be happy to assist you with making any claims – feel free to contact us 01992 444466 or by email.

HB Accountants are accountants for business. For financial and accounting guidance and support, please contact Keith or Karen. We’re still working hard to help you make the right decisions.

We are here for you during this difficult time. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.

Visit our COVID19 Business Hub for more information

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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above

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