Self-Employed Income Support Scheme
26 March 2020
The Chancellor has just announced the Government’s package of support for the self-employed; the Self-Employed Income Support Scheme.
- 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)
This does not address immediate cash-flow issues which many self-employed are facing.
However, the Chancellor repeated that some self-employed can also access the following:
- Universal credit (with an advance payment)
- Business interruption loans
- July tax return payments are deferred until January 2021
‘Given the pace at which new information is being released, the information within this article is only correct as at the date and time it was published and may well have changed’.
Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at firstname.lastname@example.org by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.
Read more articles