Eligibility for the self-employment grant

ROADKILL666

Hi ,
Just wondering if any of you awesome people can help.
In the tax year of 18/19 I took Voluntary redundancy from my employer in the August and was self-employed from the September 20 18 and have been ever since. I have read in the government
guidelines that more than  50% of your total income  must have come from self employment to be eligible for the grant. I have completed my  self assessment for 18/19. It displays slightly more income from the paye job I left in August than the self employment I started in September. This seems very unfair, as I’ve been self employed for a while now and have no income due to the current situation. And seems very strange that I’m being penalised because I had a paye employment part way through the tax year.

Jeremy535897

You are not alone, but that is how the scheme works as it currently stands.

calcotti

If needed look at eligibility for Universal Credit https://www.citizensadvice.org.uk/benefits/universal-credit/. 

There are online calculators to help you assess entitlement  https://www.gov.uk/benefits-calculators

Be aware that claiming UC will end any Tax Credits, Housing Benefit or other means tested benefits you currently get.

You will be excluded from UC if you have savings over £16,000.

You may also be able to claim Council Tax Reduction from your local council.

If you are part of a couple you both have to claim and assessed on your joint circumstances.

ROADKILL666

Thank you for your replies. I will look in to UC and keep fingers crossed for for self employment grant.
Regards

eajspider

I have always received working tax credits as a solo parent not earning a lot of profit yet from my self employment . 
I should qualify for the grant but i heard they will deduct the amount you get from working tax credits is that correct ?  but i get working tax and child tax anyway when i am allowed to be open working so i feel if they do how will that work out as a reduction when i would receive that anyway as i am a low profit in normal times  !

Jeremy535897

No, there is no automatic deduction from tax credits for the self employed grant. The grant will be treated as taxable income in your self employment, so when your income is looked at for your award for 2020/21, your tax credits might be affected. But that is no different to you doing work for a customer and getting paid. Just think of the grant as a very nice customer who is paying you when you aren't actually having to do anything for them.