When the scheme opened in March, it allowed self-employed people to you to claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
It was extended to cover income from June-August, whereby the self-employed can apply for a final grant covering 70% of their earnings over a three-month period, capped at £6,570.
ELIGIBILITY:
A self-employed person who:
- Submitted a self-assessment tax return in the financial year 2018-2019 and traded in 2019-2020 tax year and intend to continue working as self-employed in 2020-2021 tax year,
- Has lost trading profits due to COVID-19 and profits are less than £50000, where that profit makes up more than 50% of their income.
Trading profits for 2016-2017, 2017-2018, and 2018-2019 will be considered where applicable.
HMRC will reimburse 80% of average profit. If the self-employed person claims tax credits, they need to include the grant in their claim as income.
Qualifying Criteria:
HMRC will use 2018-2019 tax return to determine who is eligible. Any late returns will be risk assessed.