Coronavirus – Protection For Self-Employed Workers

The Government has announced a new support scheme to help self-employed workers in the UK. The scheme, known as the ‘Self-Employment Income Support Scheme’ will provide self-employed workers a taxable grant of up to 80% of their average monthly earnings.

The key aspects of the Self-Employment Income Support Scheme includes:

• Self-employed workers will be able to claim 80% of their average earnings over the past three financial years (up to £2,500 per month for three months) and do not have to give credit for any earnings.
• The self-employed person must have been adversely affected by the coronavirus (previously it appeared that the grant applied to any self-employed person who met the criteria).
• A self-employed person can claim through the scheme and also continue to do business.

Who can apply through the Self-Employment Income Support Scheme?

Support through the scheme is only available to those:

• With profit before tax of up to £50,000 per annum;
• Whose income primarily comes from self-employment (at least 50% of their income);
• Who entered a tax return in one of three relevant years and have traded in 2018/19, 2019/10 and intend to trade in 2020/21.
• Who are trading when they apply, or would be if it wasn’t for the coronavirus;
• Who intend to continue trading in the tax year 2020/21; and
• Whose work has been impacted due to the virus.

How can I apply for a Self-Employment Income Support Scheme payment?

HMRC have an online tool to check eligibility. If you are eligible, you will then be provided with more information.

Additionally, we would suggest referring to the Government guidance and Treasury direction.

Additional support

The Government has also recently announced further support for self-employed people through the following measures:

• Business Interruption Loan Scheme;
• An increase in the amount of Universal Credit;
• The deferral of:
  • Self-Assessment income tax payments, which were originally due in July 2020; and
  • VAT payments from 20^th March 2020 to 30^th June 2020; and
• Grants for companies which pay little or pay no business rates.