Covid-19: Support for self-employed workers
On 26 March 2020, the government announced the introduction of a new Self-employed Income Support Scheme.
Under the new new Self-employed Income Support Scheme, eligible self-employed individuals, including partners, will receive a cash grant of 80% of their average monthly trading profit over the last three years, up to £2,500 a month. The scheme will run for an initial three months and be extended if required.
The following requirements must be met to be eligible under the scheme:
- the individual’s trading profit must have been less than £50,000 in the 2018/19 tax year, or their average trading profit over the last three tax years must be less than £50,000 a year;
- more than half of the individual’s income must have come from self-employment during the above periods; and
- the individual must be already in self-employment.
Individuals will be contacted by HMRC if they are considered to be eligible. HMRC will calculate the individual’s grant using the average of their trading profits from their tax returns for the last three years. The grant will be paid as a single lump sum covering March to May inclusive. HMRC hopes to start to pay the grants at the beginning of June.
This article is provided for general information only and is not intended to be nor should it be relied upon as legal advice in relation to any particular matter. If you would like more information on employment matters please contact Richard Berry at Richard.email@example.com.