What is the financial help for the self-employed?
A direct cash grant of 80% of their profits, up to £2,500 per month.
How is this worked out?
HMRC will use the average trading profits from tax returns in 2016-17, 2017-18 and 2018-19 to determine the size of the grant
If you haven’t submitted 3 years tax returns as a new business, it will be an average of what you have submitted.
Who is entitled to help for the self-employed support?
The 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 their 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.
The scheme also applies to members of partnerships
How do I apply for the self-employed grant?
You do not need to do anything, HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply. You will be asked to fill out a short form.
Please do not contact HMRC regarding this grant.
How will the grant be paid to me?
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 direct into your bank.
I’m a Small Limited Company Director, can I apply?
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. I have written a blog on guidance for you here
What do I do if I need cash now?
If you need money before grant payments are made, the self-employed will still be able to access other available government support for those affected by Coronavirus including more generous universal credit you can apply for Universal Credit here
