Information for people that are self-employed
Help available to the self-employed
Coronavirus Self-Employed Income Support Scheme - This scheme is available to people with a trading profit under £50,000 (see below for more information)
New Style Employment Support Allowance (ESA) - You may be able to make a claim for ESA, you need to have paid enough National Insurance or have NI credits. If you have to self-isolate or are infected, you will not be required provide a fit note. It will also be available from day one not the usual 7 day wait you could also get a 1 month advance up front.
Universal Credit – again this is available if you are self-employed and if affected by coronavirus there will not be a minimum income floor (assumed level of income) while you are affected.
You may be considered a worker for a company if you meet certain criteria (usually if you’re a sub-contractor) you may be entitled to more rights and pay if you are in this category (including SSP).
Payments on account due in July have been deferred until 31st January 2021. This means you have until January next year to make the payment. No late payment penalties or interest will be charged during this period. If your profits have been hit significantly, we can also make a claim to reduce your payments on account.
Coronavirus Self-employed Income Support Scheme
This scheme is open to people who file the self-employment pages of a personal tax return and to those who are a member of a partnership.
If you have made the first claim, you will be able to claim a second grant in August.
There are also 2 more grants becoming available from November.
You will be eligible if:
You submitted a tax return in 2018-19
Were “trading” in 2019-20, or would be if not for COVID-19
Intend to trade in 2020-21
Have lost trading profits due to COVID-19
Your profits were less than £50,000 AND
More than half of your income comes from self-employment (this means if you have a PAYE job and only a small bit on the side is self-employed you won’t be able to claim)
The £50,000 is worked out as being either:
In 2018-19 your profit was less than £50,000 AND more than half your income came from self-employment OR
Your average profit between 2016-17, 2017-18 and 2018-19 are less than £50,000 AND more than half your income comes from self-employment.
For the Second Grant (August claims):
You will get a taxable grant (this means it will be taxed when we do your tax return next year) which will be 80% of your average profits for the last three years. HMRC will work this out based on the tax returns submitted.
The grant is up to a maximum of £2,500 per month for 3 months and will be paid directly into your bank account in one instalment.
For the Third Grant (November Claims)
You will get a taxable grant (this means it will be taxed when we do your tax return next year) which will be 20% of your average profits for the last three years. HMRC will work this out based on the tax returns submitted.
The grant is capped at a maximum of £1,875 in total.
For the Fourth Grant:
HMRC will review the level of the second grant and set this in due course.
If you are claiming tax credits you will need to update them to include this grant once you’ve been awarded it.