The Self-Employment Income Support Scheme has now reached the stage of the fifth, and final, grant. Whilst the eligibility criteria remains the same as for previous grants there are now two levels of grant depending on a turnover test. Where turnover has fallen by 30% or more a grant of 80% of three months average trading profits up to a cap of £7,500 is payable. Where turnover has fallen by less than 30% the grant is restricted to 30% of average profits capped at £2,850.
For all businesses, other than those who started trading in 2019/20, it is necessary to compare the turnover for the pandemic period with the reference period. The pandemic period is the period of twelve months from April 2020. The reference period is usually the turnover for the tax year 2019/20. In exceptional cases it may be possible to use the 2018/19 figures where the 2019/20 figures are not representative.
For those who started trading in 2019/20 no turnover test is necessary and 80% of average profits for three months (capped at £7,500) will be paid. Be aware that the start date is not taken into account so the average may be rather lower than expected.
