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
