The grant is taxable and will be paid out in a single instalment. If your turnover has been reduced in the year April 2020 to April 2021 by 30% or more, the grant would be 80% of 3 months average trading profits to a maximum of £7,500. If your turnover has been reduced in the year April 2020 to April 2021 by less than 30% the grant would be 30% of 3 months average trading profits to a maximum of £2,850.
You do not need to contact HMRC they will contact you to apply. See next steps below for more information.
To be eligible for the grant:
- you must be a self-employed individual or a member of a partnership.
- you must intend to continue to trade
- you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021
- You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected
- You must have traded in the tax years:
- 2019 to 2020 and submitted your tax return on or before 2 March 2021
- 2020 to 2021
- You must either:
- be currently trading but are impacted by reduced demand due to coronavirus
- have been trading but are temporarily unable to do so due to coronavirus
To work out your eligibility for the fifth grant, HMRC will look at your 2019 to 2020 Self-Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you are not eligible based on your 2019 to 2020 tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.
If you are eligible for this grant based on your tax returns, HMRC will contact you from mid-July 2021 to give you a date that you can make your claim from.
HMRC are receiving very high numbers of calls, however you can contact HMRC if you cannot get the help you need online.
You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam. You can check a list of genuine HMRC contacts
This information is based on information available as of 29 June 2021. Further information and guidance will be made available as it is released.
Click here for other help you can get.