With lots of people being asked by the NHS to self-isolate, earning an income is becoming more challenging again for many self-employed drivers. However, if you’ve been told to self-isolate

you may be entitled to receive a £500 payment under the Test and Trace Support Payment scheme,

which should allow you to cover your driving expenses while you’re not earning.

Am I eligible for the Test and Trace Support Payment?

The eligibility criteria are quite straightforward: you must be employed or self-employed, and lose income because you can’t work from home.

To be eligible for the £500 Test and Trace Support Payment, you or your child must also have been told to self-isolate due to COVID-19.

Your child must live with you, normally be at school or in childcare, and be 15 years old or younger – or 25 or under if they have an Education, Health and Care plan (EHC).

You may also be eligible if you’re the guardian of a child who’s been asked to self-isolate.

What if I get other benefits?

You may be eligible for the Test and Trace Support Payment even if you or the partner you live with are getting one of these benefits:

  • Universal Credit
  • Working Tax Credit
  • Income-based Employment and Support Allowance
  • Income-based Jobseeker’s Allowance
  • Income Support
  • Housing Benefit
  • Pension Credit

How do I claim the Test and Trace Support Payment?

You can apply for the payment online, through your local council’s website. They’ll get back to you with the detailed list of evidence you need to present, but it’s typically these:

  • Evidence of your Self Assessment tax returns (or a payslip if you’re employed)
  • Bank statement
  • Test and Trace account ID, or evidence that you or your child have been told to self-isolate

You need to claim within 42 days of you or the child’s first day of self-isolation.

How does the Test and Trace Support Payment affect my taxes?

If you’re self-employed, you must report the payment on your Self Assessment tax return:

  • If your relevant trading profits for the 2020 – 2021 tax year total £6,475 or more, you’ll pay Class 2 National Insurance contributions, and you don’t need to make any adjustments to your profits for the exemption.
  • If your profits are £9,501 or more, you’ll also pay Class 4 National Insurance contributions, and you may have to make an adjustment for the exemption.

Relevant profits include trading profits from all of your self-employments and partnerships, as well as the total of your self-isolation support payments.

The amount of the self-isolation support scheme payments should go in the box named  ‘Adjustment to profits chargeable to Class 4 National Insurance contributions’ on either your:

  • self-employed pages (box 102 on SA103F)
  • partnership pages (box 27 on SA104F or SA104S)

If  you generally complete a short tax return (SA200) and your profits exceed £6,475 you may need to complete the main tax return (SA100 and any relevant supplementary pages) instead, so you can make the adjustment for the Class 2 or Class 4 National Insurance contributions exemption.

If you wish to pay Class 2 National Insurance contributions voluntarily, you can still do this by ticking the appropriate box on your return.

About Splend

At Splend we help on-demand drivers thrive, and we continue to help our members through the COVID-19 coronavirus pandemic. Our dedicated Member Success Representatives and Member Care Team are on standby to answer any questions you might have.

Simply call us on 0333 016 4331