Scottish Coronavirus Newly Self-Employed Hardship Fund Now Open
The Scottish Coronavirus Newly Self-Employed Hardship Fund opened earlier today. This fund is targeted at the newly self-employed. You can claim a one-off payment of £2,000 if: –
- You became self-employed on or after 6 April 2019 and
- You have lost revenue due to the coronavirus pandemic and
- You have not been able to access support through other COVID-19 business support schemes including the Coronavirus Self-Employed Income Support Scheme
In addition, you must be able to sign a declaration confirming ALL of the following statements: –
- you became self-employed on or after 6 April 2019 (and did not submit a tax return including income from self-employment for 2018-19)
- over 50% of your income is from self-employment
- your trading profits were below £50,000 in the tax year 2019/2020
- you have lost business due to the coronavirus pandemic and are suffering financial hardship as a result
- you are ineligible for other COVID-19 related business support (including the Business Interruption Loan Schemes, Corporate Finance Fund, Job Retention Schemes, Future Fund, R&D Focussed SMEs Fund, Coronavirus Self-Employment Income Support Scheme, Non-Domestic Rates relief, Small Business Grant or other business support)
- you do not receive working age benefit payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit
- you trade as self-employed sole trader and not as a limited company or partnership
- you have taken steps to limit costs and expenditure (including through schemes such as VAT deferral and seeking a mortgage payment holiday)
- you do not have access to sufficient savings or other sources of income to meet basic needs
To claim the one-off payment, you need to apply to your local council. The links to each Council are at the foot of this blog.
As part of the claims process you will be asked to provide the following: –
- Proof of identity,ideally photographic such as a valid passport or driving licence
- Proof of address, for example a recent Council Tax bill, utility bill or electoral register entry
- Evidence of active trading up to March 2020 such as bank statements (business or personal) covering 3 months to March 2020 showing income and outgoings from your self-employment
You will also be asked for two of the following: –
- an active supplier or reseller trade account
- valid business insurance
- Your HMRC Unique Taxpayer Reference. If you have not yet registered for self-assessment you will be asked for copies of correspondence/other details showing that registration is being sought/or to provide further details to explain the position.
- VAT Registration Number (if you are registered for VAT)
- marketing materials for your business, e.g. business website address and links to any active social media accounts
- other evidence of business activity to support your claim – such as correspondence with customers or suppliers.
Successful applicants will receive payment of the one-off grant of £2,000 within 10 working days from submitting the completed application form and all supporting documents.
If you receive a grant you can continue to work or take on another employment including voluntary work.
Links to local council websites:-
Orkney (link under “Support”)
Photo by Martin Sanchez on Unsplash
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
