Self-Employed Income Support Scheme

On 26th March, Chancellor, Rishi Sunak announced “world-leading scheme to support the UK’s self-employed affected by the Coronavirus outbreak.”

The details are as follows:

A direct cash grant of 80% of self-employed’s average monthly trading profits over three years, up to £2,500 per month
Scheme applicable where trading profit is 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
More than half of income in these periods must come from self-employment
Grants to be available for at least three months
Availability from early June 2020
Payment of grant will be a single sum
Less than three years in self-employment, the scheme will consider whatever accounts are available
If no filed trading accounts the scheme is not available
Those who pay themselves a salary and dividends through their own company are not covered
But can claim for their salary under the Coronavirus Job Retention Scheme if paid via PAYE
No application is required and HMRC
HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational
Income support scheme is being designed by HMRC from scratch
The grant will be taxable in the hands of the payees
Scheme is available to members of partnerships
Before grant payments are made, the self-employed can access other available C-19 government support
This includes more generous universal credit and business continuity loans where they have a business bank account
Further information and details of the scheme will be shared shortly by HMRC

The Government says that the Self-Employed Income Support Scheme “..brings parity with the Coronavirus Job Retention Scheme, announced by the Chancellor last week, where the Government committed to pay up to £2,500 each month in wages of employed workers who are furloughed during the outbreak.”

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E&OE

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