Self-Employment Income Support Scheme (Second Grant Window)
How HMRC work out the amount of the second and final grant
If HMRC have confirmed you are eligible for the second and final grant, this is how the grant amount will be calculated if your average trading profits were, for example, £42,000 over the last 3 tax years.
Average trading profit
Divide by 12
Multiply by 3
Work out 70%
As the maximum amount payable for this grant is £6,570 that is the amount you will receive.
How the grant works
If you receive the grant you can:
- continue to work
- start a new trade or take on other employment including voluntary work and duties as a military reservist
The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance. HMRC will work out if you’re eligible and how much grant you may get.
Who can claim
You can claim a grant if you’re a self-employed individual or a member of a partnership and your business has been adversely affected due to Coronavirus.
To make a claim for the second and final grant your business must have been affected on or after 14 July 2020.
All of the following must also apply:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
You cannot claim the grant if you trade through a limited company or a trust.
If you claim Maternity Allowance this will not affect your eligibility for the grant.
To work out your eligibility HMRC will first look at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.
If you’re eligible
If you want to claim the second and final grant you must make your claim on or before 19 October 2020.
You’ll have to confirm to HMRC, when you make your claim, that your business has been adversely affected by Coronavirus on or after 14 July 2020.
How much you’ll get
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then divide by 3.
The second and final grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service will tell you how HMRC has worked your grant out.
The first grant, for which applications closed on 13 July 2020, was based on 80% of your trading profits and capped at £7,500 in total.
The grant amount HMRC work out for you will be paid directly into your bank account, in one instalment.
How to make a claim
To make a claim you can click HERE
What you will need
You will need your:
- Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
- National Insurance number – if you do not have this find out how to get your lost National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a BACS payment can be accepted) including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account
Please note, unfortunately we are not able to make this claim on your behalf. You must not ask a tax agent or adviser to claim on your behalf as this will trigger a fraud alert, which will delay your payment.
After you’ve claimed
HMRC will check your claim and pay your grant into your bank account in the next 6 working days. HMRC will send an email when your payment is on its way.