Continued Support for the Self-Employed
Millions of self-employed people are to benefit from the continued support scheme.
Also – don’t forget that you only have until 19 October 2020 to claim the second grant.
Last week it was announced that there will be a grant extension for self-employed individuals and partnerships.
Who can claim
To be eligible for the grant extension self-employed individuals, including members of partnerships, must:
- currently be eligible for the the Self-Employment Income Support Scheme (although they do not have to have claimed the previous grants)
- declare that they are currently actively trading and intend to continue to trade
- declare that they are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1 November and the date of claim)
What the grant extension covers
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.
The grants are subject to Income Tax and National Insurance Contributions.
How to claim
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.