Most self-employed businesses will be entitled to £2,500 per month for a period of three months with a possibility of it being extended. The taxable grant is equal to 80 per cent of average monthly profits over the last two years, up to £2,500 per month. Unlike the furlough scheme you can still claim even if you carry on working or take a job or volunteer. If you are self employed as well as employed the you could qualify under both schemes. However, you must be able to say that your business has been adversely affected by Coronavirus.
Restrictions on who can claim
Four key restrictions apply
- If trading profits exceed £50,000 you will not be eligible for the funding. The test is applied for 2018, 2019 and the average of last three years
- Income from self-employment must be more than 50% of your total income in any of those three periods
- Must have filed a tax return for 2019 in order to claim. You must submit it by 23 Aprll if it is late.
- Self-employment must not have finished
HMRC say that they will contact you directly and invite you to claim. We have emailed our clients who might be eligible. There is a portal where you can lodge a claim. If you do so they will pay the appropriate level of income straight into your bank account.
HMRC are clear that property letting businesses will not qualify - even those qualifying as furnished holiday lets.