COVID-19 Update 27 March – Self-Employed Income Support Scheme

Following the Chancellors announcements, our experts have detailed what we know so far.

Self-Employed Income Support Scheme

Thursday 26 March once again brought big announcements by the Chancellor, Rishi Sunak. There had been increasing pressure for the government to release details of its support package for self-employed individual and although the full details are to follow, we summarise below what is known at this point in time:

• Open to self-employed individuals whose income has been negatively impacted by COVID-19.
• This includes partners in a partnership.
• The individual must have filed there 2018/19 tax return. There is an additional four week period in which to file the return if it has not been filed already.
• The individual must have trading income in 2019/20, be trading at the point of application, and intend to trade in 2020/21.
• Trading profits must be below £50,000 in order to qualify.
• More than 50% of the individual’s income must derive from self-employment.
• The scheme will pay a grant worth up to 80% of the individuals averaged monthly profits over the last three tax years, or £2,500 per month if lower, and will run for three months.
• HM Revenue and Customs are working hard to build the systems needed and they hope to have these ready by the beginning of June. HM Revenue and customs will contact qualifying individuals when the systems and processes are up and running.

The Chancellor acknowledged the delays in the implementation of the scheme and the potential hardship this could place individuals in. He did though stress that individuals could potentially benefit from the universal Credit and business continuity loans.

During his speech, the Chancellor made it very clear that the lower national insurance rates paid by the self-employed in comparison to employees was becoming increasingly difficult to justify given the recent rescue packages are identical in terms of financial support. Although no changes to any rates have been announced now, one must suspect this will be something to look out for in future Budgets.

Further details regarding the Self-Employed Income Support Scheme can be found here

Coronavirus Job Retention Scheme

We know many people have had questions regarding this scheme, please see the key updates here.