The Chancellor has just announced the Government’s package of support for the self-employed; the Self-Employed Income Support Scheme.
- The Government will pay a taxable grant of 80% of average monthly profit over the last 3 years up to £2,500 per month
- This matches the provision made for employees under the Coronavirus Job Retention Scheme
- This will be in place for 3 months, backdated to 1st March 2020
- Payments under the scheme will be accessible from the beginning of June, so individuals will receive their 3 months’ in one lump sum payment
- HMRC contacts eligible individual directly
- Applicants then fill out a form and receive pay from HMRC directly into their bank accounts
- The scheme will only be accessible to self-employed people with trading profits up to 50,000 per annum
- Applicants must make the majority of income through self-employment
- Must have a tax return for 2019 to be able to apply (aimed at ensuring people cannot suddenly claim they are self-employed to access the scheme)
This does not address immediate cash-flow issues which many self-employed are facing.
However, the Chancellor repeated that some self-employed can also access the following:
- Universal credit (with an advance payment)
- Business interruption loans
- July tax return payments are deferred until January 2021