Self Employed Income Support Scheme

The Chancellor has announced that self employed individuals who qualify will receive direct cash grants though a UK-wide scheme to help them during the coronavirus outbreak. The Chancellor has set out plans that will see those who are self-employed receive up to £2,500 per month in grants for at least 3 months. Called the Self-Employed Income Support Scheme, those who are eligible can receive a cash grant worth up to 80% of their average monthly trading profit over the last three years. It is anticipated that this will cover 95% of people who receive the majority of their income from self-employment.

Eligible people for the scheme will be able to apply directly to HMRC for the taxable grant, using a simple online form, with the cash being paid directly into people’s bank account.

The Self Employed Income Support Scheme will be open to those with 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. To qualify, more than half of your 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 income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all 3 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.

Self-employed individuals can already benefit from a series of measures announced by the Chancellor to boost household incomes and will be able to access these while the new scheme is being rolled out. These include increases to Universal Credit, alongside income tax and VAT deferrals.

For more information go to Brighton Mortgage Broker – The Finance House

https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals