Self-Employment Income Support Scheme grant extension
The grant is being extended from 1 November 2020. Find out if you're eligible and how much you can get here.
Self-employment and Universal Credit
Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you’re on a low income, out of work or you cannot work. Find out if you’re eligible for Universal Credit.
If your business has been affected by coronavirus (COVID-19)
You may be able to get a grant through the Self-Employment Income Support Scheme. If you get the grant, your Universal Credit payments may stop or go down.
Providing information about your income and earnings
At the end of each monthly assessment period, you’ll need to report:
- how much you earned from self-employment, even if it’s nothing
- any money you paid into a pension
- information about your business
This also applies to company directors, even those paying themselves by PAYE.
Information about your business
You’ll need to report payments into and out of your business in the assessment period. This includes:
- the total amount your business received
- how much your business spent on different types of expenses, such as travel costs, stock, equipment and tools, clothing and office costs
- how much tax and National Insurance your business paid
Your business’s property
You do not need to report things your company already owns (‘business assets’), such as machinery, buildings or cash in your company account.
How your Universal Credit payment is worked out
Your Universal Credit payment will be based on the earnings you report at the end of each monthly assessment period.
If you’re already getting Universal Credit
The way your Universal Credit payment is worked out has temporarily changed because of coronavirus.
Payments are not currently being calculated using an assumed level of earnings, called a Minimum Income Floor. They are now based on your actual earnings.
If your payments were calculated using the Minimum Income Floor, they may change.
If you’re both self-employed and employed
Your Universal Credit payment will be calculated based on your combined earnings from self-employment and employment.
If you make a loss from self-employment, only your employment earnings will be used to calculate how much Universal Credit you get.
Reporting changes in your circumstances
You’ll need to report any change in circumstances, for example if you:
- close your business
- start a different kind of business
- take a permanent job
- are no longer able to work
If you cannot pay your tax bill on time
Contact HM Revenue and Customs (HMRC) as soon as possible if you have missed your payment. How you contact HMRC depends on what you need to pay. You have to pay interest if you pay late. You may avoid penalties by contacting HMRC as soon as possible.
If you cannot pay because of coronavirus (COVID-19)
If you did not make a Self Assessment payment on account due in July 2020, your payment deadline will have been delayed (deferred) until 31 January 2021. You do not have to contact HMRC and will not have to pay a penalty.
Contact the HMRC coronavirus (COVID-19) helpline if you cannot pay any other tax bills because of coronavirus.
If you’re self-employed
If your business has been affected by coronavirus (COVID-19), you may be able to claim a grant through the Self-Employment Income Support Scheme.
If you cannot pay your Self Assessment tax bill
You can set up a payment plan to spread the cost of your latest Self Assessment bill if:
- you owe £30,000 or less
- you do not have any other payment plans or debts with HMRC
- your tax returns are up to date
- it’s less than 60 days after the payment deadline
You do not need to contact HMRC if you set up a payment plan online.
Call the Self Assessment helpline if you’re not eligible for a payment plan or cannot use the online service.
Self Assessment Payment Helpline
Telephone: 0300 200 3822
Monday to Friday, 8am to 4pm
Find out about call charges
If you cannot pay other taxes
You might be able to set up a Time to Pay Arrangement with HMRC if you’re unable to pay any other taxes in full. This lets you spread the cost of your tax bill by paying what you owe in instalments. How you do this depends on whether you’ve received a payment demand. If you’ve received a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter. If you’ve not received a bill or letter, call the Payment Support Service.
Payment Support Service
Telephone: 0300 200 3835
Monday to Friday, 8am to 4pm
Find out about call charges
