Coronavirus update 26 March (2): Chancellor announces self-employed income support scheme
Self-Employed Income Support Scheme
Good afternoon. Chancellor Rishi Sunak has just delivered the Downing Street press briefing, outlining extra support for the self-employed by way of the self-employed income support scheme.
Because this is such an important matter for many of our clients, we’ll go straight to the details of the new self-employed income support scheme.
The scheme will:
- Give the self-employed a taxable grant worth 80% of their average monthly profit (over the past three years), up to £2,500.
- Operate for at least three months, and will be renewed as necessary.
- Allow you to claim the grants and continue to do business.
- Be operational and making grants by the beginning of June, possibly earlier. In June you will get three months’ money in one payment.
To qualify, you must:
- Already be self-employed and have submitted a tax return for 2019. If you haven’t, you have 4 weeks from today (26 March) to do so.
- Make the majority of your income from self-employment
- Have trading profits of less than £50,000 in 2018-19, or average trading profits of less than £50,000 in 2016-17, 2017-18 and 2018-19. In both cases these profits must constitute more than half your average taxable income over the period.
If you are eligible for the scheme, you will be contacted by HMRC.
There will be many questions about the scheme. We will be finding out more about the detail as soon as we can – and will keep you updated. Sign up for our newsletter on our blog home page.