As per the Government’s announcement, the scheme will allow self-employed to claim a taxable grant worth 80% (the same percentage as announced for employees) of trading profits up to a maximum of £2,500 per month (same amount as announced for employees) for the next three months. This may be extended if needed.
Who is eligible:
The Self-employed individual or a member of a partnership and those:
Who has submitted Income Tax Self-Assessment tax return for the tax year 2018-19; (HMRC has given time to file a tax return to those who have not filed for 2018/19)
Traded in the tax year 2019-20
Are trading at the time of application or would be except for the COVID-19
Intend to continue to trade in the tax year 2020-21
Have lost trading/partnership trading profits due to the COVID-19
To be eligible self-employed trading profits must also be less than £50,000 and more than half of the income comes from self-employment.
This is determined by at least ONE of the following conditions being true:
Trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of the total taxable income
Average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period
For those who have less than three years’ self-assessment, the average income will be calculated accordingly.