SELF EMPLOYMENT INCOME SUPPORT SCHEME

COVID 19 News and Updates – UK | Prager Metis | Mar 27, 2020

Summary of Government Support produced by Prager Metis – Last updated 26 March 2020

What we know

The Government has heeded to concerns that there was not sufficient help for self-employed persons to include individuals in partnership. The Chancellor of the Exchequer, Rishi Sunak, announced today the following help for self-employed persons.

  • Self-employed individuals who earn less than £50,000 per year will be entitled to a taxable grant worth 80% of their average earnings over the past three years (or less than three years where self-employment commenced later), up to a maximum of £2,500 per month.
  •  The payment will be made by way of a single lump sum and will be paid in early June. The scheme will last for three months though it could be extended for a longer period if necessary.
  •  To ensure that the scheme benefits only those persons who are genuinely self-employed, it will be available to people who make the majority of their income from self-employment.
  •  The scheme is only open to those who commenced self-employment within the 2016/17 and 2018/19 tax years and have submitted their 2018/19 tax return. If the 2018/19 tax return has not yet been submitted then it must be submitted by 23 April 2020.
  •  It would appear that the scheme rules precludes an individual from qualifying for the grant if they first commenced self-employment in the 2019/20 tax year.

The above help is in addition to the schemes already been announced (see below).

  • Increase in the Universal Standard Allowance by £1,000 a year and raising the working tax credit basic element by the same sum.
  • Accelerating processing of claims for the Universal Credit so that applicants do not face undue delays for the benefit.
  • Delay of off-payroll provisions for contractors deemed to be employees until 6 April 2021.
  • Mortgage payment holiday for three months if this is needed.
  • The next self assessment payments (July2020) would be deferred until January 2021.
  • VAT deferment (please see separate factsheet).

Who to contact

For the self-employment grant, HMRC have announced that they will contact those who they believe are eligible. Further details can be found here. Click Here

For making a claim to universal credit: Click Here

For information on mortgage payment holiday:

Please contact your lender to arrange this.

Anticipated Availability

The initiatives outlined are operative.

Further information

Please see the Government Publication “Covid-19 Support for Business”.

Useful links

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-who-are-paying-sick-pay-to-employees