Tonight, the Chancellor Rishi Sunak announced the governments new measures to support the self employed, here are the key points on eligbility, what you need to do, how it will work and when it will be working.
Eligibility
To be eligible, self employed must have:
At least 1 year of accounts available
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 income in these periods must have come from self employment
Completed and submitted a 2019 self assessment tax return
This scheme also applies to members of partnerships
What you need to do
HMRC will contact eligible self employed persons directly
HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational
Ensure that if you missed the January 31st deadline for your self assessment tax return that you submit it within the next 4 weeks – if you do not you will not be considered eligible.
How the Scheme Works
The scheme will be a monthly direct cash grant of 80% of average profits, taken from accounts submitted thus far (a minimum of one year up to a maximum of three years).
The grant will be taxable.
The 80% paid will be up to a maximum of £2,500 per month
When will the scheme start
The Chancellor announced the scheme will be up and running by the beginning of June
Can I still work?
Yes – the key difference between this scheme and the furloughed workers scheme is that the self employed are still able to work (and earn) whilst in receipt of this grant from the government.
Summary
Further information and details of the scheme will be shared shortly – we will update you as soon as we have more.