Claims open for second self-employed support grant


How to claim

The online service for the second and final grant is now available.

Make your claim on or before 19 October 2020.

You should contact HMRC if you receive any suspicious texts, calls or emails claiming to be from HMRC as this may be a scam.

Millions of self-employed people whose trade has been hit by coronavirus can now apply for a second support grant from the government.

More than three million people may be eligible for the payment of up to £6,570 each, which Chancellor Rishi Sunak said would be the final hand-out.

The first grant, launched in May, saw £7.8bn claimed by 2.7 million people.

HM Revenue and Customs (HMRC) has admitted thousands were paid too much, but it will not be demanding repayment. Some 15,000 payments - less than 0.6% of the total - were miscalculated in the first tranche of support, the tax authority said.

To be eligible for the Self-Employment Income Support Scheme, more than half of a claimant's income needs to come from self-employment.

The scheme is open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

Under the first payment, self-employed workers who qualified had been in line for a grant of 80% of their average profits, up to £2,500 a month for three months.

This was paid in one instalment, of up to £7,500. Applications for this first payment closed on 13 July.

As of Today, those eligible can claim the second, slightly less generous, grant covering 70% of the applicant's average monthly trading profits. It will also be made in a single payment, covering three months and capped at £2,190 a month, or £6,570 in total.

Applicants will need to confirm their business has been affected by the virus on or after 14 July, but they would not need to have taken the first grant to be eligible for the second.

The grant does not need to be repaid if you’re eligible but will be subject to Income Tax and self-employed National Insurance.

HMRC will work out if you’re eligible and how much grant you may get. Follow these steps to help understand how you can claim.

  1. Find out who can claim.

  2. Check that your business is adversely affected.

  3. Find out how HMRC works out your grant.

  4. Make your claim.

  5. Find out what happens after you’ve claimed.

Who can claim

You can claim a grant if you’re a self-employed individual or a member of a partnership and your business has been adversely affected due to coronavirus.

To make a claim for the second and final grant your business must have been effected on or after 14 July 2020.

All of the following must also apply:

  • you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • you traded in the tax year 2019 to 2020
  • you intend to continue to trade in the tax year 2020 to 2021

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.

To 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.

Find out HMRC how we will work out your eligibility.

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.

How different circumstances affect the scheme

Check if your circumstances affect your eligibility for the following:

  • if your return is late, amended or under enquiry
  • if you’re a member of a partnership
  • if you had a new child
  • if you have loans covered by the loan charge
  • if you claim averaging relief
  • if you’re a military reservist
  • if you’re non-resident or chose the remittance basis
  • state aid

If you’re eligible

If you want to claim the second and final grant you must make your claim on or before 19 October 2020.

You’ll have to confirm to HMRC, when you make your claim, that your business has been adversely affected by coronavirus on or after 14 July 2020.

If you’re not eligible

HMRC will work out your eligibility for the second grant in the same way as the first grant. If you’ve previously requested a review please do not contact us again as your eligibility will not change.

We use the information you or your tax agent or adviser sent us on your Self Assessment tax returns to work out your eligibility.

If you think the information is incorrect contact HMRC.

Find other help and support you can get.

How much you’ll get

You’ll get a taxable grant based on your average trading profit over the 3 tax years:

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then we will divide by 3.

The second and final grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service will tell you how we’ve worked your grant out.

The first grant, for which applications closed on 13 July 2020, was based on 80% of your trading profits and capped at £7,500 in total.

The grant amount HMRC work out for you will be paid directly into your bank account, in one instalment.

Find out how we will work out your average trading profits including if you have not traded for all 3 years.

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