Newly Self-Employed Hardship Fund – now open!

By 22nd February 2021 Blog No Comments

The scheme offers a one-off £4,000 payment for those whose status as being newly self-employed makes them ineligible for the UK Government’s Coronavirus (Covid-19) Self-employment Income Support Scheme.

The fund will remain open for a four-week period. The deadline for applications is 5pm on 16 March 2021.

Eligibility

To be eligible for the Newly Self-Employed Hardship Fund, you must be able to demonstrate that you:

(i)  Became self-employed on or after 6 April 2019 but before 17 March 2020 (and are therefore ineligible for the UK Government’s Self Employment Income Support Scheme because you did not submit a tax return including income from self-employment for 2018-19)

or

(ii)  Became self-employed between 1 October 2018 and 6 April 2019 but are ineligible for the Self Employment Income Support Scheme (SEISS) because you weren’t self-employed for a sufficient period of time in the 2018/19 Financial Year to demonstrate that you derived 50% of your income from self-employment

In addition, you must confirm when submitting your application that you:

  • are ordinarily resident in Scotland
  • are registered with HMRC as self-employed and have a valid Unique Taxpayer Reference (UTR) number
  • operate a business that is located in Scotland
  • trade as self-employed, not as a limited company
  • derive over 50% of your income from self-employment
  • reported trading profits below £50,000 in the financial year 2019-2020
  • started your business before 17 March 2020 and have continued to operate after 1 April 2020 (unless you are operating in a sector subject to ongoing Covid-19 restrictions which have forced the closure of your business)
  • have lost business income due to coronavirus restrictions and are experiencing personal financial hardship as a result
  • are ineligible for other Covid-19 related business grant support, including the Strategic Framework Business Fund, Covid-19 Temporary Restrictions Closure and Hardship Funds, Coronavirus Job Retention Scheme, Mobile and Home-Based Close Contact Services Fund, Wedding Sector Support Fund and Hardship Fund for Creative Freelancers
  • have taken steps to limit costs and expenditure, including through schemes such as VAT deferral and seeking a mortgage payment holiday
  • do not have access to sufficient savings or other sources of income to cover your basic living costs
  • have not breached Covid restrictions in place for businesses in Scotland

If you received funding through the first round of the Newly Self-Employed Hardship Fund launched in April 2020, you are still able to apply for support. This is a follow-on from that scheme and recognises the need for further help with living costs.

Information required

All supporting information must be submitted electronically (online).

HMRC Unique Taxpayer Reference (Your Unique Taxpayer Reference (UTR) will be required as part of the application process).

You will need to provide a recent screenshot or photo of your business tax account page from the HMRC portal clearly showing your full name and Unique Taxpayer Reference number, or another form of official communication from HMRC with your name and UTR shown.

Other information

In addition to core information on yourself and your business, such as name and address and name of business, you will also need to provide:

  • Your bank account details for this business including the sort code, account number and branch location.
  • A bank statement clearly showing evidence of business transactions. One month’s bank statement is required showing business activity from anytime during the period between 17 March 2019 and 17 March 2020. You will need to make sure your uploaded document or screenshot clearly shows the account name, bank name, account number and sort code.
  • Your National Insurance Number
  • Your business website address and/or social media web links such as Facebook or Instagram (if you have these)

Any information you give about your business (such as your registered name and address) MUST match the information held by official bodies such as HMRC.

A large number of applications for this fund are expected and they will be assessed in the order received. 

The fund will remain open for a four-week period. The deadline for applications is 5pm on 16 March 2021.

Applications can be made via this link https://www.bizsupport.scot/

 

 

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