• Covers 80% of profits up to £2,500 per month. They are taxable
  • Profits averaged over 3 years up to 2019
  • 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 as a lump sum in June backdated for 3 months

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 have created my business post April 2019 – can I claim?

Unfortunately, no. If you established your business in the time since April 2019, then you are not eligible for this scheme.

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

E.g. if in year one you made £10,000, followed by a year two profit of £30,000 and a profit of £40,000 in year three, then that is an average profit of £80,000 / 3 = £26,667.

This would be divided by 12 months so £2,222.22 * 3 months = £6,666.67.

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

80% of this = £5,334.17a

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

I haven’t yet submitted my tax return for the 2018/19 tax year – am I eligible?

Yes, but you need to submit your tax return. The government has extended the deadline for 4 weeks.

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.

I have recently quit my job to start up a business– what can I do?

If you left your job after the 29th Feb then go back to your old employer and ask them to reemploy you and then Furlough you under the Coronavirus Job Retention scheme on the basis that you will leave at the end of the scheme. It won’t cost them anything.

When will I receive my payment from the Self-Employed Income Support Scheme?

The government have said that all payments will be received by the beginning of June.

Why will it not be paid until June?

They need to build a system to administer the millions of people who will need to claim, and unfortunately this will take time.

I can’t wait until June for money – what do I do?

You will of course need to find some access to cash. We will be producing advice on this shortly.

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