Check if you can claim a grant through the Self-Employment Income Support Scheme (update)
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Contents Who can claim How to claim How we work out the amount of
the third grant Further support Other help you can get The scheme
has been extended. If you were not eligible for the first and
second grant based on the information in your Self Assessment tax
returns, you will not be eligible for the third. HMRC expects you
to make an honest assessment about whether you reasonably believe
your business will have a...Request free
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Contents
The scheme has been extended. If you were not eligible for the first and second grant based on the information in your Self Assessment tax returns, you will not be eligible for the third. HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits. To make a claim for the third grant your business must have had a new or continuing impact from coronavirus between 1 November 2020 and 29 January 2021, which you reasonably believe will have a significant reduction in your profits. The third taxable grant is worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. The online service to claim the third grant is open. Make your claim from the date we give you either by email, letter or within the service. If you’re eligible, you must make your claim for the third grant on or before 29 January 2021. The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance and must be reported on your 2020 to 2021 Self Assessment tax return. You must keep evidence to support your claim. Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa. You can follow these steps to help you understand what you can do now.
Who can claimTo be eligible for the third grant you must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust. If you claim Maternity Allowance this will not affect your eligibility for the grant. You must have traded in both tax years:
You must either:
You must also declare that:
Reasonable beliefIn order to claim, you must reasonably believe that you will suffer a significant reduction in trading profits due to reduced business activity, capacity or demand or inability to trade due to coronavirus during the period 1 November to 29 January 2021. You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected. Significant reductionBefore you make a claim, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in. HMRC cannot make this decision for you because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant. You should wait until you have a reasonable belief that your trading profits are going to be significantly reduced, before you make your claim. There are some examples that can help you decide. How HMRC works out your eligibility based on your tax returnsTo work out your eligibility we will first look at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income. If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, we will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019. How different circumstances affect the schemeThere are some circumstances that can affect your eligibility such as if:
Find out more information on how your circumstances affect your eligibility. How to claimThe online service for the third grant is available. You must make your claim on or before 29 January 2021. You should contact HMRC if you receive any suspicious texts, calls or emails claiming to be from HMRC as this may be a scam. How we work out the amount of the third grantThis is an example of how we will work out how much grant you’ll get if your average trading profits were £42,000 over the last 3 tax years. If you’re eligible, you’ll receive a grant worth of 80% paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total. Example
Further supportThere will be a fourth grant covering February 2021 to April 2021. We will set out further details, including the level of the fourth grant in due course. Other help you can getGet other financial supportYou may be able to claim Universal Credit, but even if the claim is not approved it will affect any tax credits you claim, and may affect other benefits. So you should:
If you make a claim for Universal Credit the grant may affect the amount you get, but will not affect Universal Credit claims for earlier periods. The government is also providing the following help for the self-employed:
If you have other employment as a director or employee paid through PAYE your employer may be able to get support using the Coronavirus Job Retention Scheme. Get help onlineYou can watch videos and register for free webinars to learn more about the support available to help you deal with the economic impacts of coronavirus. Use HMRC’s digital assistant to find more information about the coronavirus support schemes. Find coronavirus financial support for your business. Contacting HMRCWe are receiving very high numbers of calls. Contacting HMRC unnecessarily puts our essential public services at risk during these challenging times. But you can contact HMRC if you cannot get the help you need online. |