Self-Employment Income Support Scheme

Self-employment Income Support Scheme

Updated: 22/06/2020

On 28th  May the Government announced that the scheme would be extended with a 2nd and final payment made in August 2020.

The second and final payment will be worth :

  • Up to 70% (previously 80%) of the average monthly trading profits
  • For a period of three months
  • Capped at an overall maximum of £6,570 (previously £7,500)

Although eligibility on trading profits and tax return compliance remains the same as for the first instalment,  in order to qualify for the second payment, the business needs to be adversely affected after 14 July 2020.  This means that if your business was previously adversely affected by coronavirus, but no longer affected after 14 July you will not be eligible to make a claim.

What is meant by adversely affected ?

According to HMRC – You should keep any evidence that your business has been adversely affected by Coronavirus such as –

  • Business accounts showing a reduction in turnover (Guild Resources Pay and Deduction Statements)
  • Details of any coronavirus related business loans
  • Dates your business had to close due to lockdown restrictions
  • Dates you were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures.

HMRC have now published some examples  of what they consider to be adversely affected for the purposes of both the first and second instalments, with construction businesses as examples.

Please have a look through the examples and discuss with your advisors or The Guild before making a claim.

Please also ensure that you make your claim for the first instalment by 13 July 2020 if you have not already done so.

We would also remind you that the grant will be liable to Income Tax and National Insurance via your 2020/21 Self-Assessment.  This could result in a liability in the region of 29-42% of the grant payable to HMRC on 31 January 2022.  This will impact any potential tax refund or liability for the tax year ended 5 April 2021.

Find out about the extension to the scheme

The information below can be found here 

This scheme is being extended, and you’ll be able to claim a second and final grant in August 2020.

We will work out your eligibility the same way as the first grant. If you make a claim for the second grant you will have to confirm your business has been adversely affected on or after 14 July 2020.

This 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.

You can claim for the second and final grant even if you did not make a claim for the first grant.

How to Apply
(Payment 1)

Find more information on how to apply to the grant here.

How to Apply
(Payment 2)

Find more information on how to apply to the grant here.

After Claim

See our Guide about what you need to know after you’ve claimed your grant.