Summary of Self-Employment Income Support Scheme

What does it do?

Supports self-employed individuals (including members of partnerships) whose income has been negatively impacted by COVID-19. • The scheme will allow self-employed individuals or a member of a partnership to claim a taxable grant of 80% of average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether.

• You’ll get a taxable grant based on average trading profit over the 3 tax years 2016-17, 2017-18 and 2018-19
• The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

• If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.

You can claim if you are a self-employed individual or a member of a partnership and you:
• Traded in the tax year 2018-19 and submitted your Self-Assessment Tax return on or before 23 April 2020 for that year
• Traded in the tax year 2019-20
• Intend to continue to trade in the tax year 2020-21
• Carry on a trade which has been adversely affected by coronavirus

• To work out your eligibility HMRC will look at your 2018-19 Self-Assessment Tax Return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.

• If you’re not eligible based on your 2018-19 Self-Assessment Tax Return, HMRC will then look at the tax years 2016-17, 2017-18 and 2018-19.

• Guidance is available via the UK Government website as to how HMRC will work out your eligibility.

• You should not claim the grant if you’re above the state aid limits.

• You should not claim the grant if you’re a limited company or operating a trade through a trust.

• Grants under the Self Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.

• Detailed guidance is available via the UK Government website.

• You can also access guidance to find out how your circumstances can affect your eligibility for the scheme.

• If you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it.

• You can make a claim for Universal Credit while you wait for the grant. You should record the grant as part of your self-employment income and it may affect the amount of Universal Credit you get. This will not affect Universal Credit claims for earlier periods. • The online service is now available. Make your claim from the date HMRC gave you.

• You must make the claim yourself. Your tax agent or advisor must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.

• You can use HMRC’s online tool to find out if you’re eligible to make a claim. Your tax agent or adviser can also check your eligibility on your behalf. You’ll need your Self-Assessment Unique Taxpayer Reference (UTR) number and National Insurance number

• If you’re eligible, HMRC will tell you the date you’ll be able to make a claim from and ask you to add your contact details.

• If you are told you can claim straight away you’ll need:
o Government Gateway user ID and password – if you don’t have a user ID, you can create one when you make your claim
o UK bank details (only provide bank details where a Bacs payment can be accepted)
• You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

• If you have been told that you are not eligible and you submitted your Self-Assessment Tax returns between 26 March 2020 and 23 April 2020, check your eligibility again as the online service has been updated.

• If you have been told that you are not eligible and you think you are eligible, you should first check who can claim or contact your tax agent or advisor for help.
• If you still think you should be able to claim you can ask HMRC to review your eligibility.

• Once you have submitted your claim HMRC will check your claim and pay the grant into your bank account within 6 working days. HMRC will send an email when your payment is on its way.

• You can check the status of your payment via the UK Government website.

• If you think the grant amount is wrong, you should check how much you’ll get or contact your tax agent or advisor for help.
• If you still think the amount is wrong, you should then ask HMRC to review your grant amount.

• You must keep a copy of all records in line with normal self-employment record keeping requirements.

• You’ll need to report the grant:

o On your Self-Assessment Tax Return
o As self-employed income for any Universal Credit claims
o As self-employed income and that you’re working 16 hours a week, as changes to your tax credit claims.

• The grant should be treated as income received on the day it’s paid for any Universal Credit or tax credit changes.