The scheme the Chancellor has announced is expected to cover around 95% of current self-employed business people, but there are a number of self-employed who will not be covered.
Who can claim
You can claim if you’re a self-employed individual or a member of a partnership and:
- you traded in the tax year 2018 to 2019 and submitted your 2018/19 Self Assessment tax return on or before 23 April 2020
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by coronavirus
Your business could be adversely affected by coronavirus if, for example:
- you’re unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coroanavirus
- have caring responsibilities because of coronavirus
- you’ve had to scale down or temporarily stop trading because:
- your supply chain has been interrupted
- you have fewer or no customers
- your staff are unable to come in to work
Who is unable to claim
Those who will be unable to make a claim are:
- Directors or owners of Limited companies. This scheme is only for sole traders, partnerships and LLPs
- Those who have not yet submitted their 2018/19 Tax Return
- Those with a taxable trading profit of over £50,000 in 2018/19, or more than £50,000 on average for 2016/17, 2017/18 and 2018/19
- Those whose self-employment income forms less than 50% of their overall income
- Those operating a trade through a trust
- If you’re already above the state aid limit, or if claiming the grant would take you above those limits (the maximum level of aid a business may receive under the Temporary Framework is €800 000 (€120,000 per undertaking active in the agriculture and aquaculture sector or €100,000 per undertaking active in the primary production of agricultural products).
Other help you can get
There is other support available if you’re not eligible for the grant:
- You can claim for Universal Credit
- Deferral of Self Assessment Income Tax and VAT payments
- Grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
- Bounce Back Loan Scheme
And finally please remember…
If you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it.
