HMRC prepares for claims from self-employed affected by Covid-19

The government department is contacting people who may qualify to apply for the Self-Employment Income Support Scheme.

Applications open on Wednesday, May 13, with payments to reach bank accounts by May 25 or six working days after the claim is made.

The money will support individuals or business partners whose trade has been impacted by coronavirus, and the majority of workers who get at least half of their income from self employment will be eligible.

The temporary scheme allows for grants worth up to 80 per cent of average trading profit to be paid out, capped at £7,500 (three months’ profits) in a lump sum.

Working from recent tax returns, HMRC will determine who qualifies and is contacting people via email, text or letter. There is also an online checker available so people can find out for themselves if they qualify.

To qualify, individuals must have annual profits of no more than £50,000 and have filed a self assessment tax return.

The online checker can be found here.