A number of you have contacted me
about support for the self-employed during the COVID-19 pandemic.
I have included summaries of the new
measures available to provide support for people who are self-employed at this
difficult time, below for your convenience:
On 26 March, the Chancellor Rishi Sunak announced a
world-leading scheme to support the UK’s self-employed affected by the
coronavirus outbreak.
These include:
·
A direct cash grant of 80% of their profits, up
to £2,500 per month
·
latest announcement in an unprecedented package
of government support to protect businesses and individuals
·
Millions of self-employed individuals will
receive direct cash grants though a ground-breaking UK-wide scheme to help them
during the coronavirus outbreak, the Chancellor announced today.
In the latest step to protect individuals and businesses,
Rishi Sunak has set out plans that will see the self-employed receive up to
£2,500 per month in grants for at least 3 months.
Millions of people across the UK could benefit from the new
Self-Employed Income Support Scheme, with those eligible receiving a cash grant
worth 80% of their average monthly trading profit over the last three years.
This covers 95% of people who receive the majority of their income from
self-employment.
This brings parity with the Coronavirus Job Retention
Scheme, announced by the Chancellor last week, where the Government committed
to pay up to £2,500 each month in wages of employed workers who are furloughed
during the outbreak.
Cleaners, plumbers, electricians, musicians, hairdressers
and many other self-employed people who are eligible for the new scheme will be
able to apply directly to HMRC for the taxable grant, using a simple online
form, with the cash being paid directly into people’s bank account.
Chancellor Rishi Sunak said:
“Self-employed people are a crucial part of the UK’s
workforce who’ve understandably been looking for reassurance and support during
this national emergency.”
“The package for the self-employed I’ve outlined today is
one of the most generous in the world that has been announced so far. It
targets support to those who need help most, offering the self-employed the
same level of support as those in work.”
“Together with support packages for businesses and for
workers, I am confident we now have the measures in place to ensure we can get
through this emergency together.”
The scheme will be open to those with a trading profit of
less than £50,000 in 2018-19 or an average trading profit of less than £50,000
from 2016-17, 2017-18 and 2018-19.
To qualify, more than half of their income in these periods
must come from self-employment.
To minimise fraud, only those who are already in
self-employment and meet the above conditions will be eligible to apply. HMRC
will identify eligible taxpayers and contact them directly with guidance on how
to apply.
The income support scheme, which is being designed by HMRC
from scratch, will cover the three months to May. Grants will be paid in a
single lump sum instalment covering all 3 months, and will start to be paid at
the beginning of June.
Individuals should not contact HMRC now. HMRC will use
existing information to check potential eligibility and invite applications
once the scheme is operational.
Those who pay themselves a salary and dividends through
their own company are not covered by the scheme but will be covered for their
salary by the Coronavirus Job Retention Scheme if they are operating PAYE
schemes.
The scheme has been designed after extensive engagement with
stakeholders including the TUC, the Federation of Small Businesses and IPSE -
The Association of Independent Professionals and the Self-Employed.
Self-employed individuals are already benefitting from a
series of measures announced by the Chancellor to boost household incomes and
will be able to access these while the new scheme is being rolled out.
These include a strengthening of the welfare safety-net with
a £7 billion boost to Universal Credit, income tax and VAT deferrals, £1
billion more support for renters and access to three-month mortgage holidays.
More information on the scheme and how to claim for it,
can be found via the below link:
Self-employed people can also apply for Business Interruption
Loans, more information on which can be found below:
