Self Employed Income Support Scheme

Self Employed income support scheme

• Government will pay self-employed people adversely affected by coronavirus a taxable
  grant worth 80% of their average monthly trading profit over the last three years, up to
  £2,500 per month, for at least three months (in line with the employed scheme)
• The scheme will be open to those with trading profits of £50,000 or less, who make most of their income from self-employment.
• Those who trade through a limited company and pay themselves a salary and dividends are
  not covered but will be covered for their salary by the Coronavirus Job Retention Scheme if
  they are operating PAYE scheme.
• It will not apply to anyone who started trading in 2019/20 i.e. those that have started a new
  business in the last 12 months.
• Must have filed tax return for 2018/19, and intended to trade after April this year.
• If not already filed 2018/19 tax return, has be done within 4 weeks to qualify benefit from
  the Government grant, deadline for submission of the same is 23 rd April 2020.
• If you receive more than 50% of income from other earning e.g salary, you won't be
  eligible for this grant.

Illustration
Mr XYZ started part time self-employment in 2016 and his trading profit of last three-year average
was £20,000 and his employment income in the last two tax years amounts to £27000
Mr XYZ not eligible for the self-employed income support scheme as his majority income comes
from employed Earning, – More that 50% of the income sourced from employed earnings.

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