Who is eligible?

If you are self-employed or partner in a partnership firm and have been adversely affected by the recent Coronavirus pandemic you are eligible to claim using this scheme. The grant need not be paid back but needs to be included and taxed in your Self Assessment Tax return for 2020-21.

How much will you get? 

You will get a taxable grant based on your average trading profit over the 3 tax years

  • 2016-17
  • 2017-18 and
  • 2018-19

HMRC will work out the average by adding the profits of the three years and dividing by 3

The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. The amount will be paid by HMRC straight into your bank account.

Check if you are eligible to claim

You can check online to find out if you’re eligible to make a claim. Your tax agent or adviser can also check your eligibility on your behalf using the link https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

You’ll need your:

  • Self Assessment Unique Taxpayer Reference called the UTR number
  • National Insurance Number

You should be able to find both on your previous year’s tax return or contact your tax agent or advisor who would have it.

Once you have established your eligibility you need the additional information below to make the claim using the same link as mentioned above.

  • 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 the bank account

How to claim

  • You have to make the claim yourself. Your tax agent or advisor cannot make the claim for you but you can contact them for support or information.
  • You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus
  • You should not claim the grant if you’re a limited company or operating a trade through a trust
  • HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate

After your claim

HMRC will check your claim and pay your grant into your bank account in 6 working days from the date the claim is made and will also send you an email when your payment is on its way.

Record Keeping and Reporting

You must keep a copy of all records in line with normal self-employment record keeping requirements, including:

  • the amount claimed
  • Claim reference number

You should also keep any evidence that your business has been adversely affected by coronavirus such as:

  • business accounts showing a reduction in turnover
  • confirmation of any coronavirus-related business loans you have received
  • dates your business had to close due to lockdown restriction
  • dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures

Report the grant 

  • on your Self Assessment tax return
  • as self-employed income on any Universal credit claim

Please conact [email protected] if you need any help on knowing more about the scheme and wanting to make your claim to HMRC

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