Insights

The government’s second and final grant for the self-employed has opened for applications. This offers a chance for three million people who meet the eligibility criteria to receive a payment of up to £6,570 to offset business disruption caused by Coronavirus.

Millions have already benefitted; when the first grant launched in May 2020, 2.7 people claimed for £7.8bn worth of funding.

Eligibility criteria for Self-Employment Income Support Scheme

Over 50% of claimant's income must come from self-employment.

Trading profits must be either: less than £50,000 in 2018-19; or the average trading profit from 2016-17, 2017-18 and 2018-19 should be less than £50,000.

The second grant will cover 70% of the applicant's average monthly trading profits. This will be made as a single payment covering three months and will be capped at £2,190 a month.

The maximum amount that can be claimed is £6,570.

Applicants should be able to confirm that their business has been affected by Covid-19 for the period after 14 July 2020.

It is not necessary to have claimed for the first grant (applications for this have already closed) to be eligible for the second.

Who is missing out on the self-employed support grant?

A number of people will not meet the eligibility criteria for this government support:

• Newly self-employed people who have not yet submitted a tax return;
• People who have other income sources greater than that of their self-employed earnings, e.g. they might have income from a rental property;
• Self-employed people who have earned made profits in excess of the £50,000 threshold.

To apply for a grant, visit the Gov.uk website: https://www.gov.uk/government/news/million-of-self-employed-to-benefit-from-second-stage-of-support-scheme