COVID-19 Self-Employed Income Support Scheme
March 27, 2020
Following the growing pressure to do more to support the UK’s five million self -employed workers during the COVID-19 crisis, Chancellor Rishi Sunak last night announced the Governments Self-Employed Income Support Scheme.
On 26th March 2020 the government announced its support for the self – employed, introducing a Self – Employment Income Support Scheme. The scheme is intended to mirror the support that is given for furlough employees and will pay qualifying self-employed individuals up to 80% of their average monthly income, this will be up to a limit of £2,500 per month.
- 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)
- They were trading during 2019/20 and will carry on (when the Covid-19 crisis is over) and have lost income as a result of the crisis
Individuals who commenced self-employment after 5 April 2019 will not be able to apply for the scheme as they have no tax records on which payments can be calculated. Individuals trading through a personal service company or a limited company will not be eligible but may be able to claim under the Coronavirus Job Retention Scheme
Information remains limited, but we will ensure that you remain up to date as further details are announced on the topic.