As of 17th August, millions of self-employed people whose trade has been hit by Coronavirus can apply for a second support grant from the government. More than three million people may be eligible for the payment of up to £6,570 each, which Chancellor Rishi Sunak said would be the final hand-out. The system is the alternative to the extended furlough scheme for employed workers.
The claims window is initially open for a four-day period but anyone who thinks they may be eligible and hasn’t been contacted by HMRC has until October to make a claim. So, we suggest that you check your mail and emails in case the government has already contacted you. It’s a chance for them to let you know if you are eligible and to understand better how to make a claim.
So, how do I know if I’m eligible?
- You can be eligible for the second grant regardless of whether or not you claimed the first payment payout
- You must have filed a tax return for 2018/19, meaning you must have been self-employed before April 6, 2019
- You must earn more than half of your total income from self-employment and your trading profit must be less than £50,000 a year
- Self-employed workers who are company directors or run their businesses as limited companies cannot apply
The grants are calculated based on an average of your profits over three tax years – 2016/17, 2017/18 and 2018/19. If you didn’t trade in 2016/17, then it will be based on your average profits in 2017/18 and 2018/19, or in 2018/19 if that’s the only year you traded. For those of you who think you are eligible and haven’t been contacted by HMRC, you can go onto the online system which will tell you if you are eligible, and when it is you can make a claim. Use this link to check.
The furlough and self-employment schemes have been a lifeline for millions of people and businesses. Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.
Self-employed workers will need the following info to claim:
- Self-assessment unique taxpayer reference (UTR) – if you do not have this, contact us on how to get your UTR number
- National insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details
The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance. If you have any queries, contacts us on 02085300720 or email businessdevelopment@nordens.co.uk
