On Friday, 29th May, the Chancellor Rishi Sunak has announced an extension to the Self-Employment Income Support Scheme. Here are the main details of the changes.
The Scheme, which was introduced on 26 March, allows self-employed workers to claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ work of profits, and capped at £7,500 in total. This is now being referred to as ‘the first grant’. You can find more information about the first grant in our earlier blog post.
Self-employed workers will now be able to make a claim for a second and final grant in August 2020.
What is the deadline for making a claim under the first grant?
On or before 13 July 2020. You can make your claim online here.
How long is the scheme being extended for?
The scheme was originally due to run until the end of May 2020. It is being extended by 3 months to allow self-employed workers to make a claim for a second and final grant in August 2020.
How much can I get for the second grant?
The second and final grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
How do I check if I am eligible?
Gov.uk has introduced a tool to check your eligibility online. If you’re not eligible but you think you should be, you can ask HMRC to carry out a review.
How do I apply for the second grant?
Applications for the second grant will open in August. Further guidance will be published by the government on 12 June.
Do I need to have claimed the first grant in order to receive the second grant?
No. For example, you need to confirm that you business has been adversely affected by coronavirus in order to make a claim – if you have only been adversely affected by coronavirus in this later phase you will still be able to apply for the second grant.
This note is based on information as at 1 June 2020 and will be updated as and when further information is provided.
Insight from Pamela Muir, Insolvency, Restructuring and Corporate Partner at Thorntons. For more information contact Pamela on 03330 430350 or email pmuir@thorntons-law.co.uk
