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The coronavirus (COVID-19) Self-employment Income Support Scheme (SISS)

The SSIS will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for three months.

This may be extended if needed. Funds are however unlikely to be available before June.

Once HMRC contact you, you can apply if you are:

  • a self-employed individual; or
  • a member of a partnership

AND

You:

  • have submitted your tax return for the tax year 2018-19 (You have till 23 April 2020 to do this if not)
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 AND more than half of your taxable income (50%) must come from self-employment.
This comparison can be for:

  • The year ended 5 April 2019

OR

  • An average of the three years ended 5 April 2017, 2018 and 2019

If you started trading between 2016-19, HMRC will only use those years for which you filed a tax return.

How much you’ll get

If you qualify you will get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be up to a maximum of £2,500 per month for 3 months.

They will pay the grant directly into your bank account, in one instalment.

As mentioned above, you cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

If you claim tax credits you will need to include the grant in your claim as income.

The government is also providing the following additional help for the self-employed:

deferral of Self Assessment income tax payments due in July 2020 and VAT payments due from 20 March 2020 until 30 June 2020

  • grants for businesses that pay little or no business rates
  • increased amounts of Universal Credit
  • Business Interruption Loan Scheme
  • If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme.

Disclaimer: This note does not contain a full statement of the law and it does not constitute advice. Please seek advice if you have any questions about the information set out above.

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