Funding provided by the Scottish Government offers a one-off £4,000 payment for those whose status as newly self-employed makes them ineligible for the UK Government’s Coronavirus 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.
To be eligible for the Newly Self-Employed Hardship Fund, you must demonstrate that you:
(i) Became self employed on or after 6 April 2019 but before 17 March 2020
(ii) Became self employed between 1 October 2018 and April 2019 but at ineligible for the Self Employment Income Support Scheme (SEISS) as 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.