Self-employment Income Support Scheme

· Are you self-employed?  This means are you a sole trader or in a partnership?

· Did you submit a self-assessment tax return for the tax year 2018/2019?

· Were more than 50% of your earnings from self-employment?

· Did you have trading profits of less than £50,000?

If you can answer yes to each of the above then you will qualify for the self-employment income support scheme.

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

We appreciate that you will have lots of questions and therefore we have have tried to answer as many as we can in this guide.


How is the self-employment grant calculated?

You will receive an average of the profits made from self-employment over the past three years. 

  • HMRC will add together your trading profits for the tax years 2016/17, 2017/18 and 2018/19. 
  • This total will be divided by 3 to get your yearly average. 
  • This will then be divided by 12 to get your monthly average. 
  • You will be paid 80% of your monthly average, up to a maximum of £2,500 per month for 3 months.

How will I receive the payment?

HMRC will pay the grant directly into your bank account, in one instalment. 

When will I receive the payment?

It is expected to be paid at the end of June 2020.

Who is eligible?

Only people who have submitted a self-assessment tax return for 2018/19 will be considered. 

What if I haven’t yet filed my tax return for 2018/19?

The filing deadline for this was 31st January 2020, however if you haven’t yet filed your tax return you have until 23rd April 2020 to submit it to be considered for this grant.

How do I apply?

You don’t need to.  HMRC will contact you automatically if you are eligible for the scheme and will invite you to apply online.

Do I pay tax on the grant?

Yes, you will need to include your grant payment on your self-assessment tax return for the 2020/21 tax year.  If will form part of your taxable income and will be subject to the normal taxes.  You will also need to include the grant if you claim tax credits.

What happens if I started self-employment after April 2019?

Unfortunately, in this instance you won’t be considered for the grant.  This is to avoid fraudulent claims.  Instead you should be able to claim Universal Credits. (https://www.gov.uk/universal-credit)

Does the grant include directors of limited companies?

No, this is only for people who operate as sole traders or in a partnership.

If I work as a subcontractor in the construction industry will I still get a tax rebate this summer?

Yes, if you are due a tax rebate for the 2019/20 tax year then your rebate will be processed as normal following the submission of your self-assessment tax return.

What happens if I haven’t been trading for three years?

If you have filed a self-assessment tax return for 2018/19 and your profits from self-employment are beneath £50,000 and form more than 50% of your income then you will still be considered.  The grant will be averaged over the available tax returns submitted.

What can I do if my profits were over £50,000?

You will not be considered for the self-employment income support scheme but you may be able to claim Universal Credits. (https://www.gov.uk/universal-credit)

What can I do if my profits were less than 50% of my income?

You will not be considered for the self-employment income support scheme but you may be able to claim Universal Credits. (https://www.gov.uk/universal-credit)

Where can I go for more information?

To see the government guidance visit https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme