The Chancellor, Rushi Sunak, has announced today, a world-leading scheme to support the UK's self-employed affected by the coronavirus outbreak.
- Direct cash grant of 80% of their average trading profit over the last three years, upto £2,500 per month for three months
Millions of self employed individuals will receive direct cash grants through a ground breaking UK wide scheme aimed to help during the coronavirus outbreak which brings it in parity to the support given to employees via the Job Retention Scheme.
Cleaner, plumbers, electricians, musicians, hairdressers and many other self employed people who are eligible for the new scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people's bank account.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18, 2018-19.
To qualify, more than half their income in these periods must be from self-employment.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all three months, and will start to be paid at the beginning of June.
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite application once the scheme is operational.
The scheme is also available to members of Partnerships
Before grant payments are made, the self-employed will be able to access other available government support for those affected by coronavirus including generous universal credit and business continuity loans where they have a business bank account.
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
Further details of the scheme will be available shortly by HMRC and we will continue to keep this website updated.
Last reviewed: 26th March 2020 17:40