27 March 2020
Last night, the Chancellor announced a financial support regime for the self-employed during the COVID-19 outbreak.
It is understood that the Government will pay self-employed people facing financial difficulties a taxable grant worth 80% of their average monthly profits over the last 3 years. The support will be capped at £2,500 per month and will initially last three months. Self-employed people who claim these grants can continue to carry out business (unlike employees under the “furlough regime” who cannot work).
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Douglas Strang, |
There are various eligibility requirements: The scheme is only open to self-employed persons with trading profits up to £50,000 per year. They must also make the majority of their income from self-employment and have submitted a tax return for 2019. The deadline for tax returns was 31 January 2019 but the Government is giving those who have not submitted a return an additional four weeks from today to do so.
This scheme is not likely to be available until the end of June but it is understood that the Government will thereafter contact eligible self-employed persons and pay the grant directly into their bank account.
The Government has set out some information here [embed link: https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals ] and it is expected that the HMRC will produce more detailed guidance online shortly.
Please contact our Specialist Employment Team if you require advice.
Contact:
Douglas Strang, Senior Associate: E: dst@bto.co.uk / T: 0141 225 5271