The Chancellor has made a Treasury Direction under Sections 71 and 76 of the Coronavirus Act 2020.
HMRC are responsible for the payment and management of amounts to be paid under the Self-Employment Income Support Scheme, as in the Schedule to the Direction. The Direction sets the legal framework.
This week HMRC will start contacting self-employed people who are likely to be eligible through email, SMS text and letters, to tell them what they need to do to get ready to claim. They will be given a date when they can use the online service to make a claim from Wednesday 13th May 2020.
The scheme allows a taxable grant of 80% of average monthly trading profits as a single instalment capped at £7,500. A temporary scheme that may be extended.
You can continue to work, start a new trade or take on employment including voluntary work, or duties as an armed forces reservist.
Further guidance for employers and employees can be found here.
You can use an online tool to find out if you’re eligible. Your tax agent or adviser may also be able to use the online tool on your behalf.
You need your:
- Self Assessment Unique Taxpayer Reference (UTR) number – if you do not have this find out how to get your lost number
- National Insurance number – if you do not have this find out how to get your lost National Insurance number
You will need to report any grant received:
- on your Self Assessment tax return
- as self-employed income for any Universal Credit claims
- as self-employed income and that you’re working 16 hours a week for any tax credits claims