The Chancellor has announced a welcome new self-employed support scheme which gives self-employed workers a taxable grant of up to 80% of average monthly earnings.
Described as one of the most generous packages in the world, the support package for self-employed people will run for a minimum of 3 months. The amount of the grant is 80% of average monthly profits over the last three tax years (ending tax year 2018-2019), with the grant capped at £2,500 per month.
In summary, this applies to those who:
- Have a trading profit of up to £50,000
- Earn the majority of their income from self-employment
- Have submitted a tax return for 2018/19
HMRC will contact you directly and it is expected that this grant will be available to be accessed from the beginning of June.
The self-employed are still able to apply for Universal Credit (up to £1,800 per month) and the Government-backed business interruption loans.
Self-employed individuals who have not yet submitted a tax return have 4 weeks from 26 March 2020 to submit a tax return and still be eligible for this support (and a calculation will be run accordingly based upon that return). They have until 23 April 2020 to submit their tax returns and should act now. For those without 3 years of returns, the Treasury will look at what they do have but there will be nothing for the self-employed without any filed accounts.
For details on how to apply and whether you qualify go HERE
In addition, the government have put together FAQs relating to the scheme, which can be found HERE
Expect further guidance to arise for the self-employed. In the meantime, please visit HERE which details the support that is available for businesses.
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