The second round of applications for the Government’s Self-Employment Support Scheme is now open – and some self-employed workers could be eligible for grants of over £6,000.
If you’re self-employed (or a member of a partnership) and have been adversely affected by coronavirus, you might qualify for a chunk of funding from this latest support package.
Designed to help sole traders, the grant is the second of its kind following an initial round of funding announced earlier this summer.
All claims for this latest grant must be made on or before 19 October 2020.
Here’s what you need to know about applying.
Am I eligible for the grant?
To be in with a chance of claiming this grant, you must be self-employed with a business that has been adversely affected on or after 14 July 2020.
There are a number of reasons why you might not have been able to trade effectively during this period.
For example, you may have been shielding or self-isolating, lost income due to fewer clients/customers, experienced issues in your supply chain, or had to pay out for PPE to operate safely.
To be eligible for the grant, you must have also traded in the tax year 2018-19 and submitted your Self Assessment tax return on or before 23 April 2020 for that year.
Your business must have also traded in the tax year 2019-20 and intends to continue operating in the year 2020-21.
Trading profits must be no more than £50,000.
Grants are not applicable to those trading through a limited company or a trust.
How much will I get?
First, the Government will determine your eligibility by examining your 2018-19 Self Assessment return.
If you qualify and your business has suffered a financial hit, a taxable grant may be distributed based on your average trading profit over the past three tax years (2016-17, 2017-18 and 2018-19).
The grant is worth 70% of average monthly trading profits and will be paid out in a single instalment covering three months’ worth of profits.
It is capped at £6,570 in total.
How do I apply for the grant?
Head over to the Government website to check your eligibility.
You’ll need your Self Assessment Unique Taxpayer Reference (UTR), National Insurance Number, Government Gateway user details and bank information to hand.
You have until October to make your claim.
For more information, head over to the Self-Employment Income Support Scheme page online.