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Self Employment Support Scheme

With the Self Employment Income Support Scheme being extended to provide support until March 2021 HMRC have published the details for the third grant.

The Changes

The eligibility rules have changed, however a self assessment tax return for 2018-19 will need to have been submitted and will need to show income from self employment.

The third grant will offer 80% of three month’s trading profits and will be paid out in a single taxable installment (capped at £7,500). This will cover the period 1st November 2020 until 29th January 2021, claims can be made at any time throughout this period.

Eligibility

As well as the points listed below an honest assessment about whether trading profits have been or will be significantly reduced due to Covid should be made.

To claim the third grant you must be:

  • a self employed individual or member of a partnership
  • have traded in both the 2018/19 and 2019/20 tax years
  • either be currently trading but are impacted by reduced activity/capacity or demand or have been previously trading and temporarily unable to do so due to Covid
  • declare that you will continue to trade
  • only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to covid – reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.  

HMRC expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period. 

The business must have been impacted on or after 1 November 2020. Evidence to show the impact and reduction in their business activity across the qualifying period must be kept. 

As before accountants are unable to submit the claims but can answer any questions relating to the scheme.

Find further information at Gov.uk or contact AJR & Co Ltd

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