Further to our update last week, HMRC are running ahead of schedule in getting the Self Employed Income Support Scheme up and running – the first applications can be made from 13th May 2020. HMRC have already written to individuals who they think will be eligible to make a claim, however you can check your eligibility here.
You’ll require the following information to claim:
Once you have completed the eligibility check, HMRC will provide an application date for you if they think you are eligible - the dates for applications appear to be staggered over a period of time. You will also be prompted to setup your “Government Gateway” account if you don’t already have one. Individuals should complete this process to prevent delays in payments. HMRC have stated that accountants cannot make claims on behalf of their clients, individuals must make the claim themselves. This position may change, but for now individuals should check their eligibility using the link above.
In order to qualify for this support, individuals must be carrying out a trade that has been adversely affected by Covid-19. They must have been trading during the tax years 2018/19 and 2019/20 and intend to resume trading during the tax year 2020/21. Also, they must be up to date with the submission of their tax returns.
Assuming these criteria are met, there are further financial conditions – the individual’s trading profits for 2018/19 must be less than £50,000 and more than 50% of their total income. If this condition is not met then a three year average across the tax years 2016/17 to 2018/19 can be considered instead, but still must be less than £50,000 and more than 50% of their average total income.
The amount of the grant payable will be 80% of the trading profits calculated above and divided by 12 (up to a maximum of £2,500). This amount will be paid every month for a three month period.
We would expect a high demand for this service, so checking your eligibility and ensuring you have a “Government Gateway” account are essential to avoid delays in payments. Once an application has been submitted HMRC will inform you immediately if your grant is approved and the payment will be made into your bank within 6 working days.