Eligibility for the "Self-Employment Income Support Scheme" and will I end up paying it back?

ARE007

Hi there,
I've just applied for the "Self-Employment Income Support Scheme" and I have been awarded a substantial grant based on my income over the last few years. However before COVID-19 hit, my business was already struggling with income substantially down (approx. 30-40%) on the previous tax year (2018-2019). Then when COVID-19 took over in February/March my income collapsed and hasn't recovered. I'm living on savings until I can find an income, whether that's in employment or self employment. 

I'm really worried that when I come to file my tax return for 2019 to 2020, HMRC will see that my income was already down before the COVID-19 crisis and I'll be accused of fraud, or asked to repay the grant in full. As mentioned, my business was already struggling before the COVID-19 crisis started. Any help or advice would be much appreciated, thanks.

Jeremy535897

If your income collapsed due to coronavirus in March 2020, the fact that it was already less than last year due to other factors is irrelevant. Based on what you say, your worries are groundless. You do have to intend to continue to trade as self employed in 2020/21 though (or did when you claimed).

ARE007

Jeremy535897 said:

If your income collapsed due to coronavirus in March 2020, the fact that it was already less than last year due to other factors is irrelevant. Based on what you say, your worries are groundless. You do have to intend to continue to trade as self employed in 2020/21 though (or did when you claimed).

Thank you.

If I can get my income back to sustainable levels then I fully intend to trade as self employed in 2020/21, if not then I will have to seek employment else where.

My problem lies when I come to do my tax return for 2019/20. HMRC will see that my income is substantially down, currently looking around 30-40% even with this grant. I just don't want to get into a situation where I have to repay this grant due to the huge drop in my income due to non COVID-19 reasons. 

Jeremy535897

If your tax return for 2019/20 is based on the year to 31 March 2020, you would expect it to be down because of coronavirus. If your return for 2019/20 is based on the year to 31 December 2019, say, it is irrelevant as to whether it is down from 2018/19. From what you have said, 2020/21 will be even lower because of coronavirus. You are imagining a non-existent problem.