This scheme will support self-employed people whose income has been negatively impacted by COVID-19.
The scheme will support self-employed people (including sole traders, freelancers, members of partnerships) whose income has been negatively impacted by COVID-19. The scheme provides a grant to self-employed individuals, worth 80% of their profits up to £2,500 a month. HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. If individuals have fewer than three years of returns the average of these will be taken. Open for at least three months, but payments will be available from the start of June at the earliest. Individuals will be able to claim these grants and still do business.
Who can use the scheme?
You must have lost trading profits due to COVID-19. You are eligible if more than half of your income comes from self-employment and you have profits of less than £50,000. To evidence this, you can reference your trading profits and total income in 2018/19 or your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19. You must have filed a tax return for 2018-19 as self-employed or a member of a trading partnership. For those who have not yet filed for 2018-19, you will have an additional 4 weeks from the announcement to do so. You must have traded in 2019-20, be currently trading at the point of application (or would be except for COVID 19), and intend to continue to trade in the tax year 2020 to 2021.
When can I access the scheme?
Grants are expected to start to be paid at the start of June 2020 (at the earliest). The scheme is anticipated to run for three months initially. Money will be paid straight into individuals’ bank accounts via HMRC in a single lump sum. In the meantime, self-employed individuals have options to defer income tax payments, access universal credit and some will be able to access CBILS loans from the BBB.
How do I access the scheme?
Further details will be made available from the Government here in due course.