Self-employment Income Support Scheme

The Self-employment Income Support Scheme will provide support to individuals who are self-employed or members of a partnership if they have lost income due to Coronavirus.

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

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

  • have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for Coronavirus
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to Coronavirus

Your self-employed trading profits must also be less than £50,000 and more than half of your income come from self-employment. In order to benefit from the support one of the following conditions must be satisfied:

  • your trading profits/partnership trading profits in 2018-19 were less than £50,000 and these profits constituted more than half of your total taxable income
  • your average trading profits in 2016-17, 2017-18, and 2018-19 were less than £50,000 and these profits constitutes more than half of your average taxable income in the same period

If you started trading after 6 April 2016, HMRC will only use those years for which you filed a Self-Assessment tax return to determine whether you qualify.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020.

HMRC will use data from you Personal Tax Returns to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

How much you’ll get

You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount. The amount you will receive is capped at £2,500 per month for 3 months,

HMRC will pay the amount directly to you in one instalment.

How to apply

You cannot apply for this scheme – HMRC will contact you if you are eligible and invite you to apply online. HMRC have stated that you should not contact HMRC about this support at this stage.

Further information

The Government guidance can be found here