Has the scheme been extended?
Under the scheme there have been five schemes announced so far, four of which are now closed. The UK Government has now extended the scheme until the end of September 2021 and businesses can claim a grant for the period May 2021 to September 2021 up until the end of September.
Am I eligible?
As a self-employed individual or member of a partnership, you can apply if you meet the criteria set out by the government. HMRC have announced that the criteria for the fourth grant have changed. For the first time, some of the relatively newly self-employed, who completed tax returns for the 2019-2020 financial year, will qualify. They previously lost out if they had not been trading in 2018-2019. For full details of the criteria visit GOV.UK >
When can I claim?
Claims for the latest grant are open until the end of September 2021.
To get ready for when the claims service opens, self-employed individuals should check they are eligible for the scheme using HMRC's online eligibility checker. In order to receive quick confirmation from the eligibility checker you'll need your:
Once the online check is complete, if eligible you are given a date when you can submit your claim.
For more information visit GOV.UK >
How much will I get?
Under the fifth scheme, people whose turnover has fallen by 30% or more will receive a grant of 80% of your average trading profits, capped at £7500. People whose turnover has fallen by less than 30%, will receive a 30% grant, capped at £2850. HMRC will confirm the amount once your grant is approved.
Your average trading profit is the average over tha last 4 tax years. If you haven't submitted self-assessment tax returns for all 4 years, HMRC use the most recent returns after the gap.
For more information about the calculation, visit GOV.UK >
What is trading profit and where do I find it?
Trading profit is your total trading income on your tax return minus any allowable businesses expenses and capital expenditure. You can find full details in the HMRC guide.
Does the £50,000 trading profit relate to each member of a partnership?
The trading profit limit is per legal entity. A Partnership, or LLP, is a legal entity in its own right so the limit applies across all partners.
When and how will I get the money?
HMRC will pay the grant into your bank account in one instalment. We will update this article when more details are available about when grants will be paid.
How should I account for the income?
Once you receive the grant, you should record this as a bank receipt under the Other income area of your nominal ledger. Find out how in our quick guide.
What if I have more than one business?
When calculating trading profit and eligibility, HMRC will include all businesses in which you are deemed self-employed.
What if I'm not eligible?
If you've been told you're not eligible but think you should be, you should speak to your accountant and review your information then check again.
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