What is the Self Employment Support Scheme?
HMRC have announced a fourth grant for someone who is self employed or a member of a partnership.
Additional self employed individuals will qualify for this grant and as it is based on your 2019/20 tax return rather than the 2018/19 return that previous payments were based on the amount of the grant will change.
Do I qualify for the grant?
To qualify for the grant:
- You must still have been trading in the year ended 5th April 2020 and 2021.
- Your trading profits must be no more than £50,00
- Other income must not be more than your trading profits
- You must also be either:
- Currently trading but be impacted by reduced demand or constraints due to coronavirus
- have been trading but can’t due to coronavirus
If you do not qualify in 2019/20 HMRC will consider previous years.
How much will I receive?
You will receive 80% of three months average profits up to a maximum of £7,500.
How do I get the grant?
The grant will be claimed online as per the previous grants. It will be available from late April and can be claimed until 31st May.
The delay is due to having to process 2019/20 tax returns onto the online claims service.
Is this the last grant?
No there will be a fifth and final grant paid in late July. It will be based on the income rules above but 80% of average profits will only be paid where your sales have dropped by 30% or more. If your sales have dropped by less than 30% the grant will be based on 30% of your average profits capped at £2,850
FAQs
My mate is still trading and claiming the grant so can I?
When completing the grant application, you have to self-declare that you qualify for the grant. HMRC are investing in an additional 1,000 officers to combat fraud in Coronavirus support, if they find this grant has been wrongly claimed they can charge a penalty of 100% of the grant so you could end up paying back double what you have received.
My income dropped in 2019/20 will I receive the same amount of money?
No, the grant is based on a different tax year so if you had a lower profit in 2019/20 you will receive a smaller grant,
I missed the first three grants as I only started trading in 2019/20 will I qualify for this grant?
Providing you meet all the other criteria you will qualify for this final grant.
Where can I find further information?
You can find the full guidance here
If you do need any further help and support, please do not hesitate to contact us on hello@spotlight-accounting.co.uk.
