Coronavirus: NEW Self-Employed Income Support Scheme announced
Urgent calls for government assistance for the self-employed were partially answered last night by Chancellor, Rishi Sunak’s address to the public.
To reflect the Coronavirus Job Retention Scheme available to employees, the government will now offer similar cash grants for eligible self-employed individuals affected by the coronavirus. Key features of the new Self-Employed Income Support Scheme are:
- cash grants up to 80% of your average monthly trading profit,
- based on accounts over the last three years – if you do not have three years of accounts, you will be assessed on the number of accounts available,
- up to £2,500 per month for at least 3 months.
To be eligible:
- you must earn more than half of your income from self-employment,
- your trading profits must be 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,
- you must already be in self-employment.
If you are self-employed and receive a salary and dividends through your company, you will not be eligible for the Self-Employed Income Support Scheme. You are instructed to apply through the Job Retention Scheme. There is still some uncertainty around the details of the scheme and how it applies to individuals who have been in operation for less than 12 months.
The Scheme will be available from June with payments in a single cash lump sum. The delayed implementation of the scheme is still likely to result in cash flow problems for self-employed individuals over the coming months.
HMRC will contact individuals directly if they qualify with an invitation and guidance on how to apply.
For more guidance on the scheme and the Job retention Scheme for employees please contact our employment team at email@example.com.