Self Employment Income Support Scheme now open for applications
Applications for the Self Employment Income Support Scheme are now open, with millions of self-employed people expected to apply for government support.
The grant scheme, announced in March to help support the self-employed who have suffered an income drop due to the coronavirus crisis, is now accepted applications.
Self-employed people can claim a grant based on 80% of their average monthly profits over the past three years.
The claim period is for three months between March and May, with a maximum payment of £2,500 a month, or £7,500 in total.
Once an application to the Self Employment Income Support Scheme is made, the government aims to pay grants into bank accounts within six days.
The scheme is equivalent in terms to the Coronavirus Job Retention Scheme, which saw employees placed on furlough, and their employers able to claim up to 80% of their wages back from the government.
Self Employment Income Support Scheme claim codes
If you’re self-employed, you will need a claim code already provided by HM Revenue & Customs in order to submit your claim from today.
HMRC have used tax return information from the 2016/17, 2017/18 and 2018/19 tax years to identify potential claimants, sending them a claim code via email, SMS messages or letter.
The scheme doesn’t cover all self-employed people.
If you have profits exceeding £50,000 a year in the past three years, you are not eligible to make a claim.
To be eligible, at least half of your income must come from self-employment.
Another category of people who will not be eligible to claim are company directors paid via dividends (a share of profits) from their limited companies).
Despite an announcement yesterday that the furlough scheme for employees will be extended until October, self-employed people are still waiting for more news on any continuation of the self employed support scheme.