Government help for the newly self-employed in Scotland
Who is this for?
The newly self-employed do not qualify for the Self-Employment Income Support Scheme (SEISS), so the Government has set up the Newly Self-employed Hardship Fund as an alternative scheme. This fund is specifically for those people who became self-employed on or after 6 April 2019.
To be eligible you must:
- have become self-employed on or after 6 April 2019
- have lost revenue due to the coronavirus pandemic
- have not been able to access support through other COVID-19 business support schemes
Successful applicants will receive a one-off payment of £2,000.
Where do I apply for this fund?
You need to apply in your Local Authority.
You will be asked to provide documentary evidence of your status and eligibility for the grant. The criteria has been set out by the Scottish Government and each local authority will operate their own fund.
You will need to provide:
- documentation to show you had an active business prior to COVID-19, such as your VAT registration, bank account statements showing revenue and outgoings linked to self-employment, marketing materials, etc. A full list is provided with the application form.
- self-declaration that you are currently experiencing hardship
- evidence of being resident in the local authority area of application
Am I eligible?
You must sign a declaration confirming that you meet all of the following criteria:
- you became self-employed on/after 6 April 2019 (did not submit a tax return including income from self-employment for 2018-19)
- over 50% of your individual income is from self-employment
- your trading profits were below £50,000 in financial year 2019-20
- you have lost business due to coronavirus and are suffering financial hardship as a result
- you are ineligible for other COVID-19 related business support (including the Business Interruption Loan Schemes, Corporate Finance Fund, Job Retention Schemes, Future Fund, R&D Focussed SMEs Fund, HMRC Self-Employment Income Support Scheme, Non-Domestic Rates relief, Small Business Grant or other business support)
- you do not receive working age benefit payments (Universal Credit, Statutory Sick Pay, Employment and Support Allowance, Job Seekers’ Allowance, Income Support) or have applied for but not yet started receiving Universal Credit or an advanced payment of Universal Credit
- you trade as self-employed, not as a limited company. If in a partnership, you are self-employed for pay and tax purposes
- you have taken steps to limit costs and expenditure (including through schemes such as VAT deferral and seeking a mortgage payment holiday)
- you do not have access to sufficient savings or other sources of income to meet basic needs
How much does it cost?
How long does this take?
Up to 10 working days from application to appraisal and funds being released for approved applications.
Can I still work if I receive the grant?
Yes. You can continue to work or take on other employment including voluntary work.
You can apply direct through your local authority’s website.
- Argyll and Bute
- Dumfries and Galloway
- East Ayrshire
- East Dunbartonshire
- East Lothian
- East Renfrewshire
- Moray (MS Word doc, 41kB)
- Na h-Eileanan Siar
- North Ayrshire
- North Lanarkshire
- Orkney (link under “Support”)
- Perth and Kinross
- Scottish Borders
- South Ayrshire
- South Lanarkshire
- West Dunbartonshire
- West Lothian
Get in touch with LBR
We’re keen to hear from you – get in touch with us on LinkedIn, Facebook or Twitter or chat directly with one of our support agents via WhatsApp.