Financial Assistance for the Self-Employed
Rishi Sunak the Chancellor has just announced that the self-employed facing financial difficulties will now be able to claim up to 80% of their monthly wages covered by the government.
This will be subject to the same cap as employees being furloughed at £2,500.00 per month and will last initially for 3 months, although this period can be extended.
The monthly wages will be calculated using the average monthly profits of those self-employed over the last three financial years’.
It will be made available to those who are already self-employed and have a tax return for 2019 and will apply to individuals with trading profits of up to £50,000.00 per year. According to the Chancellor, this will see the majority benefit from this new initiative.
This change makes a drastic turnaround from the criticism that the UK Government have not done enough for the self-employed, who have often been referred to as the ‘forgotten lot’ in this pandemic crisis.
Whilst the news is greatly welcomed and now treats the self-employed with the same parity as the employed, it is unlikely to be accessible until June.
- The scheme is only open to anyone with trading profits of up to £50k. Self-employed people who earn more will not qualify;
- The scheme is only open to those who make the majority of income from self-employment; if you are employed but have a ‘side job’ which is self-employed, you will not be eligible;
- The scheme is only those who have submitted a tax return for 2019. However, those who did not submit their tax return by the due date of 31 January 2020, and have not yet submitted one, can still submit a tax return for 2019 for a further four weeks from today;
- There are no steps to take. HMRC will contact eligible self-employed people directly and pay the grant straight into their bank account after inviting them to fill out an online form;
- The self-employed income support scheme will be open to people across UK for at least 3 months. However, the scheme is unlikely to be up and running before the end of June.
If you have been affected by the Coronavirus and need employment advice / assistance, then do not hesitate to call us on 01582 853 783 or email us at email@example.com