Funding for the self-employed in 2024

The United Kingdom offers a variety of forms of financial support for businesses, aimed at giving entrepreneurs the means to start or grow their business through loans and non-repayable grants. Bear in mind, however, that not all of them are available to the self-employed. In this article we discuss the funding options available, how to apply for them, and other forms of support for self-employed people in 2024.

Can you still apply for support under the Self-Employment Income Support Scheme?

The Self-Employment Income Support Scheme (SEISS) was a government scheme for the self-employed (including those in a partnership). It offered a taxable grant worth 80% of three months’ average profits to those whose business was adversely affected by the COVID-19 pandemic. Unfortunately, SEISS has ended and can no longer be applied for in 2024 - the final, fifth grant was paid out in 2021.

What forms of support are available to the self-employed in the UK?

Despite the end of the Self-Employment Income Support Scheme (SEISS), there are other schemes and options offering support for the self-employed in the UK that can help with managing finances and growing a business. The available options include:

• Start Up Loan: Government-backed personal loans for starting and growing a business. You can borrow from £500 to £25,000, with a repayment period of up to 5 years. Beyond the financial help, the scheme also offers 12 months of free business mentoring.

• The Prince’s Trust: A programme providing help in the form of mentoring and funding to start and grow a business, for people between 18 and 30. It offers the Start Up Grant, a non-repayable grant of up to £5,000.

• Access to Work: Provides support in getting or keeping a job for people with health conditions (physical or mental) or a disability, whether employed or running a business as self-employed. One of the available forms of help is a grant to cover the costs of the practical support needed to do the job.

• Local funding schemes: From time to time, local and regional support schemes are run offering advice or grants for business growth. Information about them can be found, for example, on local authority websites - always check the conditions carefully, because not every grant or loan is aimed at the self-employed.

• Tax deductions in the tax year: Running a business always involves costs - some of these costs can be deducted from your taxable profits when filing your Self Assessment tax return for a given tax year. Deductible costs include, among others: running an office, business travel, employing staff, and marketing.

How do you apply for funding as a self-employed person in the United Kingdom?

Applying for funding can look different depending on the form of support and the source a business owner is applying to. We can, however, point to a few general steps that apply in every case:

• Identify the right scheme: First of all, find a scheme that matches your business’s needs. It is best to check the requirements for a given grant before submitting an application, which will save you wasting time applying for support you have no chance of getting.

• Prepare your documents: Depending on the scheme, different documents may be required, such as a business plan, bank statements, or evidence of income and expenses. Some grants and loans have a limited budget or number of applications they can accept, so the order in which applications arrive can matter - it is therefore worth preparing all the documents properly, which will speed up the whole process.

• Complete the application: Most schemes have online forms to fill in, asking for detailed information about you and your business. In some cases you can also apply by phone or by post.

• Track your progress: After submitting your application, it is worth checking its status regularly and responding to any additional questions that may come up while it is being considered.

Can self-employed people in the UK qualify for Universal Credit?

Yes, self-employed people can qualify for Universal Credit if they meet certain income criteria and have limited savings (up to £16,000). To claim Universal Credit, the self-employed must go through a verification process confirming that their business is their main source of income, and while receiving the benefit they must report the income they earn through self-employment along with information about the business’s finances (including revenue and expenses).

Professional help for the self-employed - an accountancy office in the United Kingdom

PolAccount’s specialists have years of experience in UK tax matters. We provide comprehensive support for individual and business clients, including companies and the self-employed. If you are planning to set up a business or want professional help with your bookkeeping, get in touch with us!