Details: This is a taxable grant for 80% of trading profits up to a maximum of £2,500 per month for the next 3 months (but this may be extended if needed).
HMRC will calculate the amount based on your total trading profit for the last 3 tax years (or the years you have been trading if you haven’t been trading for 3 years).
The grant will be paid directly into your bank account, in one instalment backdated to 1 March, estimated to arrive at the start of June.
Unlike employees who are furloughed, the self-employed can continue to work.
How to apply:
This scheme is not open yet. HMRC will contact those who are eligible and invite them to apply online.
You can apply if you:
- submitted your self-assessment tax return for the tax year 2018-19
- 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 trading profits are less than £50,000
- more than half of your income comes from self-employment.
People do not need to, and should not, contact HMRC.
If you have not submitted your self-assessment tax return for the tax year 2018-19, you have an extra 4 weeks to do this (until 23 April 2020).