Coronavirus support if you’re self-employed
HMRC Self-employed Income Support Scheme
You may be eligible for government money if you intend to continue to trade and:
- Your business is actively trading but faces reduced demand due to coronavirus, or
- Your business was previously trading but is temporarily unable to do so due to coronavirus
Following the pattern of earlier schemes, a grant may be payable for two three month periods: Nov 2020 to Jan 2021 and Feb 2021 to Apr 2021.
If you were eligible for the previous scheme, it is likely that you will be eligible also for this one. The scheme’s official name is HMRC Self-Employment Income Support scheme grant extension. For more information and how to claim, see the government scheme’s website here.
Any grant paid is calculated at 80% of 3 months average monthly trading profits and is paid in a single instalment. A three month grant is capped at £7,500 in total. It is taxable and subject to National Insurance contributions. Webinars about the scheme and application process are being offered by the government to everyone interested. You can register here.
If your business pays employees using PAYE, you can apply for a grant to pay them 80% of their salary by means of the Coronavirus Job Retention Scheme here.
Business Interruption loans may be available from the government here while you’re waiting for money to arrive from the Coronavirus Job Retention Scheme.
If you are not eligible for an HMRC grant, then you may be eligible to claim Universal Credit. For more information and how to claim see the government website on Universal Credit here.
Payments are calculated from the date of your application. Since the first payment arrives five or six weeks after the application date, it’s advisable to apply as soon as possible. Meanwhile, an advance on the first payment is available.
To calculate what benefits you might be eligible for, see: https://www.turn2us.org.uk
You may also be eligible for special grants. See grants at: https://www.turn2us.org.uk
If you receive a Universal Credit payment, you may be able to claim reduced council tax payments: https://www.gov.uk/apply-council-tax-reduction
You may also be eligible for reduced energy bills. See: https://www.gov.uk/the-warm-home-discount-scheme
There is also a cold weather scheme. See: https://www.gov.uk/cold-weather-payment