Self-employment Income Support Scheme – COVID-19
27th March 2020 (Information correct at the time of publication)
Having introduced the Coronavirus Job Retention Scheme for employees, the Government have now announced measures to help the self-employed who have lost trading profits due to Covid-19.
The Scheme is open to self-employed individuals and partners in partnerships who either have trading profits for 2018/19 of less than £50,000, or whose average trading profits for 2016/17, 2017/18 and 2018/19 are less than £50,000, and those profits constitute more than half of total taxable income. It will therefore not apply to those becoming self-employed on or after 6 April 2019.
The grant will be 80% of the average profits for the years 2016/17, 2017/18 and 2018/19 up to a maximum of £2,500 per month for 3 months. It will be paid in one instalment direct into your bank account, no sooner than the beginning of June.
In order to qualify, you must have submitted your tax return for 2018/19, have traded in 2019/20, be trading when you apply (or be prevented from doing so by Covid-19) and intend to continue to trade in 2020/21.
HMRC will use data on 2018/19 self-assessment tax returns to identify those who are eligible and will contact them direct, inviting them to apply online. You cannot apply for this Scheme yet.