COVID-19 Support for the Self-Employed

The Self-employed Income Support Scheme

The chancellor today announced the Self-employed Income Support Scheme where the government will pay the self-employed a taxable grant based on their previous earnings over the last three years – up to 80% of earnings – being capped at £2,500 per month.

This will run for 3 months being roughly equivalent to the Coronavirus Job Retention Scheme announced late last week.

The scheme will be open to anyone with average profits of £50,000 or less for whom the majority of their income comes from self-employment.

Calculations of the grant will be based on the last 3 years’ of accounts. For those without 3 years the treasury will look at what they do have, the caveat being there must be at least 1 year. Those without accounts will have to turn to other financial support on offer.

Anyone who has missed the deadline for their tax return is being given an extra four weeks.

The scheme will be up and running by June, when the first 3 month’s will be rolled up into one payment. In the meantime other support such as Universal Credit is available.

Key points

• Open to anyone with profits of £50k or less.
• Majority of income must come from self-employment.
• Must have at least 1 years’ worth of accounts.
• Extra 4 weeks for those who have not yet filed.
• Available by June.

Further information

More information can be found here: Self-employed Income Support Scheme