The government has now announced the ‘Self-Employment Income Support Scheme’, a package of support for those who are self-employed.
The Chancellor announced the details of the scheme:
- A taxable grant which will pay 80% of their average monthly profit over last three years (up to a maximum of £2,500 per month). It is expected that 95% of those who are self-employed are eligible for the grant
- Only those who make the majority of their income from their self-employed work and whose trading profit is a maximum of £50,000Individuals will be able to access the scheme from the beginning of June. HMRC will contact those who are eligible directly
- In order to be able to apply, individuals must have submitted a tax return for 2019. If individuals have not yet submitted their tax return, which should have been submitted at the end of January, they have the next four weeks to submit it to be eligible for the grant
- Once they have been contacted by HMRC, individuals will be required to complete a form after which payment will be made directly into their bank account.
The scheme is expected run for at least three months, but that time period may be extended if necessary.
If individuals are not able to wait until the beginning of June they may be able to secure a Business Interruption Loan or may instead be eligible for Universal Credit.