Please note: this article was correct at the time of writing and publication. However, please bear in mind that advice and guidance may change at short notice due to the nature of this unprecedented situation. We are doing our utmost to provide up to date information, as and when it happens.

For the latest, please visit www.ncass.org.uk/coronavirus

  • Covers 80% of 3 months’ average trading profits
  • Must be self-employed or a member of a partnership
  • No payments should your average profits over the last three years exceed £50,000
  • You can still keep working whilst receiving payment via the scheme
  • Will be paid in a single instalment capped at £7,500 
  • Eligibility will be based on your 2019-2020 Self Assessment tax return

Who is considered Self Employed?

You are self employed if you operate as a Sole Trader or as a Partnership.

If you operate as a Limited company then you are not considered to be self-employed.

I pay myself a small salary and a dividend at the end of the year – can I claim this?

No. If you are paying dividends then you are operating as a limited company and are not therefore self-employed. You could however Furlough yourself under the Coronavirus Job Retention scheme and get 80% of your salary.

I am employed and cater part time – am I eligible for this scheme?

You can only access this scheme if over 50% of your earnings come from self-employment. You may however be furloughed under the Job Retention Scheme via your employed role.

I became self-employed in 2020 – can I claim?

Yes. The fourth grant will take into account 2019 to 2020 tax returns and will be open to those who became employed in tax year 2019 to 2020.

I made more than £50,000 last year will I be eligible?

If your average profits over the last 3 years equate to less £50,000 then yes. If your average is higher then £50,000 over the last 3 years then no. If you have only operated for one year and made £50,000 or more in that period, then you would not be eligible for this scheme.

How much will I get?

You will get an average of the monthly profits that you have declared for the last 3 years

You will receive a taxable grant calculated at 80% of 3 months’ average trading profits. The single instalment will be capped at £7,500 in total.

Note – this IS taxable so you would need to declare this on your next tax return.

I have been operating for more than a year but less than 3 years – what will I get?

You will get an average for time you have been operating; so if you have been operating for two years then you will get an average of those two years.

E.g. if in year one you made a profit of £10,000 and in year two you made a profit of £30,000, then your average would be £20,000

This would be divided by 12 months so £1666.67 per month * 3 months = £5,000.

Note – this IS taxable so you would need to declare this on your next tax return.

80% of this = £4,000

Is this the last grant?

A fifth and final grant covering May to September 2021 will be announced in coming weeks and self-employed individuals will be able to claim from late July.

The amount of the fifth grant will be determined by how much your turnover has been reduced in the year April 2020 to April 2021.

The fifth grant will be worth:

  • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduction of 30% or more
  • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduction of less than 30%

I have savings – am I able to claim on this scheme?

Yes. This scheme is not savings related unlike Universal Credit.

I stopped working in the middle of March 2020– am I covered?

Yes. You are covered for the full period. If you’re not eligible based on your 2019 to 2020 Self Assessment tax return, they will then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.

How do I claim?

If you are eligible, HMRC will contact you in mid-April to provide you with a personal claim date and further details.

I’m newly self-employed – can I claim?

Eligibility for the fourth and fifth grant is wider than its predecessors – if you submitted a 2019-20 tax return by midnight on 2nd March, you’re eligible. This means people who were newly self-employed can now apply for the grants.

Previously, your average trading profit was your total trading profits or losses for tax years 2016-17 + 2017-18 + 2018-19 divided by three.

Will I need to pay the money back?

While you’ll still owe Income Tax and National Insurance on any money you get through the SEISS, it’s a grant rather than a loan, meaning you won’t need to pay it back.

How will I receive payment?

If you are eligible, then HMRC will be in touch

Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme:

Claim a grant

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