What is Self Employment Income Support Scheme?

Self-Employment Income Support Scheme is for the self-employed or  member of a partnership who has been affected negatively by the coronavirus (COVID-19).

Under this scheme, you can claim a taxable grant of 80% of your monthly trading profits which is paid out in a single installment covering 3 months.

Please note that it is a temporary scheme which is capped at £7,500 and may be extended in future.

Also, the grant will be subject to income tax and self-employed National Insurance.

You can start a new trade, can continue to work, take on other any other employment, including any voluntary work, or perform duties as an armed force reservist if you receive this grant.

It is up to HMRC to decide the amount of grant you will receive and whether yo are eligible for it in the first place.

What is the eligibility criteria?

Any self-employed individual or a member of partnership can make a claim provided they fulfill the following criteria:

How is a business said to be negatively impacted by coronavirus?

A business is said to be negatively impacted by coronavirus if it is unable to function as a result of inability to work due to:

It is also said to be an affectee of coronavirus if it has had to either scale down or stop trading temporarily because of

Do different circumstances affect my eligibility for the scheme?

Yes. Different circumstances affect your eligibility or the scheme differently.

Below we mention some of these circumstances:

Find out how these circumstances affect your eligibility for the scheme here

How can you make a claim?

The online service goes live on 13 May 2020 and is being launched ahead of the original timeline.

This will help millions of self employed, covering a wide range of industries and jobs, whose livelihoods have been negatively impacted by COVID-19.

The claims will be very simple and those eligible will have the money paid into their bank account by 25 My 2020.

You will receive your payment within six working days in the event of your claim being approved.

Please also beware of any emails, texts or calls claiming to be from HMRC asking you to click on any link or soliciting your personal information.

All such communication offering tax refund or financial are a scam, must be emailed to phishing@hmrc.gov.uk and be immediately deleted.

What do I need to make a claim?

You will need the following items to make a claim:

How much grant can you expect?

The taxable grant will be based on your average trading profit over the previous three tax years

The HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years and dividing it by 3.

It will then pay the grant amount directly into our bank account in one installment.

Read this guide here if you wish to know how HMRC will calculate your  average trading profits.

What happens once I have made my claim?

As soon as you submit your claim, you will be informed straight away if your grant is approved.

In the event of your claim being approved, HMRC will pay the grant into your bank account within 6 working days.

However, you must keep a copy of all records in line with normal self-employment record keeping requirements, including:

Additionally, you will have to report the grant

Is there any other financial support available?

As you wait for the grant, you can make a claim for Universal Credit. While this grant may affect the amount of Universal Credit you get, but will not affect claims for earlier periods.

The following assistance is also available for the self-employed by the government:

Also, your employed may be able to get support using the Coronavirus Job Retention Scheme if you have other employment as an employee paid through PAYE or a director.

Get in Touch

Just fill in your details here if you wish to discuss some other matters.

Lanop Accountants and Tax Advisers for Small and Medium Businesses

We are your local Chartered Accountants and Tax Advisers based in Putney, Harley Street and Battersea. We are expert XERO Accounting advisors and trusted business advisors in Wandsworth Borough.

While we are based in South West London and Central London, our clientele is quite global and our staff is currently working remotely to serve our clients through active Zoom accounts all over UK.

As always, you can reach out to us anytime to discuss any financial issues you may have in this coronavirus pandemic.

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