Following on from our blog published on 24 March, the Government has just announced new details of their rescue package for self-employed individuals.
The key points that have emerged are:
- a new self-employed income support scheme will pay self-employed people a taxable grant worth 80% of average monthly income, capped at £2,500 per month.
- income will be calculated by taking the average of income over the last three years.
- self-employed people can claim these grants and continue to do business.
- the scheme is only open to anyone with trading profits of up to £50,000. Self-employed people who earn more will not qualify.
- the scheme is only open to those who make the majority of their income from self-employment; you will not be eligible if you are employed but have a ‘side job’ which is self-employed.
- the scheme is only for those who have submitted a tax return for 2019 in order to minimise fraud. However, those who did not submit their tax return by the due date of 31 January 2020, and have not yet submitted one, can still submit a tax return for 2019 for a further four weeks from today.
- HMRC will contact eligible self-employed people directly and pay the grant straight into their bank account after inviting them to fill out an online form. There is nothing you need to do until you have been contacted.
- although the self-employed income support scheme will be open to people across UK for at least 3 months, it is unlikely to be up and running before the end of June, so it will not help with immediate cash flow issues.
As always, we will keep you up to date with any new information that is released. If you have any queries in the meantime, please do not hesitate to contact Jane Elgar who will do what she can to assist in these uncertain times.