The Covid-19 pandemic has been the rollercoaster ride to end them all, and just when you think you’ve got a handle on the economic situation, along comes another curve that throws your carefully laid business plans into disarray.
Clients have recently been asking me to help them research and find out more information on the financial support that is available to them as a small business owner through a Covid-19 grant, so I thought it would be helpful to share my findings.
Every sector has been affected by the virus, but it’s been particularly tough for self-employed and partnership firms, who have had to adapt quickly to the new normal, maybe now the “new, new normal!”, without enjoying the same financial safety net as bigger companies. The learning curve has been near-vertical and understandably put an enormous strain on even the smartest entrepreneur’s finances.
One of the easiest ways of finding out what is available to you is by using the government’s business support finder, which helps you determine what help you can access. The online claims for the second tranche of grants under the Self-Employment Income Support Scheme are also open, and you have until 19 October to apply.
You can make a claim even if you’ve never done so before, as long as you can demonstrate your business was adversely affected by Covid-19 on or after 14 July.
This is the criteria that you need to meet to make a claim:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
Further details on how to determine whether you are eligible for a grant can be found here.
According to gov.uk, the second grant is worth 70% of your average monthly trading profits, paid in a single instalment covering three months’ worth of profits, and capped at a total of £6,570.
Once claims have been approved, grants will be paid into bank accounts in six working days – even if your business starts to recover. If you haven’t received anything after more than 10 days, give HMRC a call.
One last thing to bear in mind: grants through the Self-Employment Income Support Scheme are subject to both Income Tax and self-employed National Insurance.
Hope that helps. As always, we’re right by your side, but virtually. Let us know what support you could do with right now, or take a look at the services we offer our business owner clients here.
Stay safe, stay healthy, stay calm.