27 Mar 8 Ways to Support For Self-Employed individuals
Rishi Sunak announces a world-leading scheme to support the UK’s self-employed affected by the coronavirus outbreak. Here’s what it covers:
- A direct cash grant of 80% of their profits, up to £2,500 per month.
- The latest announcement in an unprecedented package of government support. To protect businesses and individuals.
Millions of self-employed individuals receive direct cash grants through a ground-breaking. UK-wide scheme to help them during the coronavirus outbreak, the chancellor announced today.
In the latest step to protect individuals and businesses. Rishi Sunak set out plans that will see the self-employed receive up. To £2,500 per month in grants for at least 3 months.
Millions of people across the UK benefit from the new self-employed income support scheme. Then there are people who’ll receive cash. These people are eligible for receiving a cash grant worth 80% of their average monthly trading profit over the last three years. This covers 95% of people who have received the majority of their income from self-employment
Talk about parity in the coronavirus job retention scheme, announced by the chancellor last week. Where the Government committed to pay up to £2,500 each month in wages of employed workers who are furloughed during the outbreak.
Who Can Claim?
Cleaners, plumbers, electricians, musicians, hairdressers, and many other self-employed. People who are eligible for the new scheme will be able to apply to HMRC for the taxable grant. Using a simple online form, with the cash payment into people’s bank account.
Here’s What Chancellor Rishi Sunak Has to Say:
- Self-employed people are a crucial part of the UK’s workforce. Who’s been looking for reassurance and support during this national emergency. The package for the self-employed. I’ve outlined today is one of the most generous in the world that has announced so far.
- It targets support to those who need help most. Offering the self-employed the same level of support as those in work. Together with support packages for businesses and for workers. I am confident we now have the measures in place to ensure we can get through this emergency together.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19. An average trading profit of less than £50,000 from 2016-17, 2017-18, and 2018-19.
Income Element & Already Registered people
To qualify, more than half of their income in these periods must come from self-employment.
To minimize fraud, only those who are already in self-employment. Meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them with guidance on how to apply.
What period is the cover? When will it be pay?
The income support scheme is being designed by HMRC from scratch. Will cover the three months to May. Grants will be payable in a single lump-sum installment covering all 3 months. and will start to be pay at the beginning of June.
What do I do now?
Wait. Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility. To invite applications once the scheme is operational.
Does this Scheme Cover Directors?
Those who pay themselves a salary and dividends through their own company. These are not covered by the scheme but will cover for their salary by the Coronavirus Job Retention Scheme. If they are operating PAYE schemes.
The scheme is designed after extensive engagement with stakeholders including the TUC. The Federation of Small Businesses and IPSE. The Association of Independent Professionals and the Self-Employed.
Self-employed individuals are already benefitting from a series of measures. Announced by the Chancellor to boost household incomes. Will be able to access these while the new scheme is being rolled out.
These include a strengthening of the welfare safety-net with a £7 billion boost. To Universal Credit, income tax and VAT deferrals, £1 billion more support for renters. Thus, access to three-month mortgage holidays.
- further information and details of the scheme will be shared shortly by HMRC
- HMRC will use the average trading profits from tax returns in 2016-17, 2017-18. Thus, 2018-19 to determine the size of the grant
- This scheme also applies to members of partnerships
- Before grant payments made. The self-employed will still be able to access other available government support.
- For those affected by coronavirus including more generous universal credit. Thus, business continuity loans where they have a business bank account
For more updated information, please visit the HMRC website.