Covid-19 Self employed grant - claim before the 19th October. British Florist Association

Covid-19 Self employed grant – claim before the 19th October.

Image by Pete Linforth

How does it work?

While new local lockdown restrictions are now set to come into force this week, we want to make you aware of the grants available for those business that may be adversely affected by these changes.

The first scheme allowed you to claim a taxable grant. Applications for that first grant closed on 13 July 2020.

The second taxable grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.

Applications for the second grant is now open. If you’re eligible and your business has been adversely affected on or after 14 July 2020, you must make your claim for the second grant on or before 19 October 2020. Don’t miss out !

You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.

Can I claim?

You can claim a grant if you’re a self-employed individual or a member of a partnership and your business has been adversely affected due to coronavirus.

To make a claim for the second grant your business must have been affected on or after 14 July 2020.

All of the following must also apply:

  • you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • you traded in the tax year 2019 to 2020
  • you intend to continue to trade in the tax year 2020 to 2021

You cannot claim the grant if you trade through a limited company or a trust.

Have I been adversely affected ?

Adversely affected is typically when your business has experienced lower income or higher costs due to coronavirus.

HMRC expects you to make an honest assessment about whether your business has been adversely affected. There is no minimum threshold over which your business’ income or costs need to have changed.

If you make a claim for the Self-Employment Income Support Scheme grant you’ll have to:

  • keep records of how and when your business has been adversely affected
  • confirm to HMRC that your business 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 coronavirus
    • have caring responsibilities because of coronavirus
  • you’ve had to scale down, temporarily stop trading or incurred additional costs because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work
    • one or more of your contracts have been cancelled
    • you had to buy protective equipment so you could trade following social distancing rules

Find out how different circumstances can affect eligibility to the scheme, or amount of grant.

Where to go next

To claim the grant click here

Remember that the ‘tax people’ will look into your circumstances and latest tax returns .

HMRC stress – You must make the claim yourself. You must not ask a tax agent or adviser to claim on your behalf as this will trigger a fraud alert, which will delay your payment.

For more in-depth information click here

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