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Self-employed Income Support Scheme

UK government says self-employed will get coronavirus grants worth 80% of their average earnings

Chancellor Rishi Sunak offered a £9 billion generous package to the self-employed who will be able to get a taxable grant worth 80% similar to those in employment. The self-employed income support scheme covers 95% of those who are self-employed, which is capped at £2,500.

“You have not been forgotten,

You have not been left behind,

We all stand together together”

Rishi Sunak
Self-employed Income Support Scheme

Self-employed to be treated as the employed

The Chancellor confirmed, “You have not been forgotten. We will not leave you behind. We all stand together.

“What we have done I believe will stand as one of the most significant economic interventions in the history of the British state, and by any government anywhere in the world.”

Many people have been awaiting news about how the government were going to support the self-employed. Rishi Sunak confirmed that people will also get 80%, which has been guaranteed to people in full-time work.

Timeframe

The Chancellor will make this available for 3 months, and any application will be backdated to March from June. Obviously, if there are any delays with applying this will be factored in.

Who is eligible?

The Chancellor has said that anyone who is self-employed and has filed a tax return in the past three years can apply in June for this grant. An additional 4 weeks has been granted to submit tax returns to those people who were late submitting them in January.

Criteria

If someone doesn’t have 3 years of trading, then the government have said that they will look at all of their finances before making a decision. Those who have filed tax returns in January will be eligible. He has extended the deadline to submit accounts by another 4 weeks.

  • Eligible for anyone who has trading profits of up to £50,000
  • You will need to contact HMRC to fill out forms and money will be paid directly into bank accounts after June
  • Grants anyone who missed the January deadline an additional four weeks to file a return
  • More than half of your income needs to come from self-employment

How will this affect the self-employed?

Many people were anxious about whether they would be supported by the government. In these difficult times, the Chancellor has set out measures to protect those are unemployed but also those who are genuinely going to struggle to get through this pandemic.

  • 80% up to 2,500 of average annual income for self-employed
  • 3 months but will extend if necessary
  • Can get grants which similar to furlowed staff
  • Average of annual income over the last 12 months
  • Deliverable and fair
  • Up to 50k trading profits which are for genuinely self-employed
  • Grant will be paid into account directly once applied for
  • 4 weeks extended for tax return
In the meantime…
  • Business interruption loans are available and deliverable
  • Self-employed can access Universal Credit in the meantime
  • Measures will support millions