Measures to help the self-employed through Covid-19 crisis – what we know
The Government last night (March 26) announced a scheme to support the UK’s self-employed affected by the coronavirus outbreak.
So far this is what we know about the package:
- Direct cash grant of 80% of profits, up to £2,500 per month for at least three months
Those eligible for the new scheme will be able to apply directly to HMRC for the taxable grant, using an online form, with the cash being paid directly into people’s bank account.
To qualify for the scheme:
- There must be a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.
- More than half of the income in these periods must come from self-employment.
- To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
The grant will cover the three months to May. Grants will be paid in a single lump sum instalment covering all three months and will start to be paid at the beginning of June.
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
For more details click here