Some good news for self-employed individuals who have been able to claim on the Self Employment Income Support Scheme and are still trading.
The government is extending the scheme to those self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade but continue to face reduced demand due to COVID-19.
The idea behind the scheme extension is for HMRC to provide broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
To be able to claim the scheme extension, you must be self-employed and:
- be currently eligible for the Self-Employment Income Support Scheme (you do not have to have claimed the previous grants)
- be currently actively trading and intend to continue to trade
- be able to declare that you are impacted by reduced demand due to coronavirus in the qualifying period between 1 November and the date of claim)
The scheme extension will provide two grants, paid in two lump sum instalments each of which spans three months – November 2020 through to January 2021 and from February 2021 to April 2021.
The first grant, from the start of November until the end of January, 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.
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.
As was the case with previous instalments of the self-employment income support scheme theses grants are subject to Income Tax and National Insurance Contributions and you should make provision to ensure you can meet these payments when due.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
You can read more here.