To support those who work for themselves the Chancellor Rishi Sunak has announced a new self-employed income support scheme.
The government will pay self-employed people who have been adversely affected by the Corona virus, a taxable grant worth, 80% of their average monthly profits over the last three years, up to £2,500 a month.
This scheme will be open to people across the UK for at least three months, the Government will extend it for longer if necessary.
You’ll be able to claim these grants and continue to do business.
The Government will be covering the same amount of income for a self-employed person, as they are for furloughed employees who also receive a grant worth 80%.
It will be open to anyone with trading profits of up to £50,000.
To make sure only the genuinely self-employed benefit it will be available to people who make the majority of their income from self-employment, and to minimise fraud only those who are already in self-employment, who have a tax return for 2019 will be able to apply.
95% of people who are majority self-employed will benefit from this scheme HMRC are working on this urgently and expect people to be able to access the scheme no later than the beginning of June.
If you’re eligible HMRC will contact you directly and ask you to fill out a simple online form, then pay the grants straight into your bank account.
To make sure no one who needs it misses out on support, the Government have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.
The Chancellor went on to say he knew many self-employed people are struggling right now. So the Government has made sure that support is available, self-employed people can access the business interruption loans.
Self-Assessment income tax payments that you would normally pay in July, can be deferred to the end of January next year.
The Government has changed the welfare system, so that self-employed people can now access Universal Credit in full, a self-employed person with a non-working partner and two children living in the social rented sector can receive welfare support up to £1,800 pounds a month.