I welcome the Chancellor’s announcement of support for the self-employed yesterday. You can find full details below and here: https://www.businesssupport.gov.uk/self-employment-income-support-scheme/
I have been contacted by constituents who may need further assistance, and I have contacted the Treasury today. In particular I raised concerns regarding:
- Those with income split between PAYE and self-employment
- Those whose income comes from dividends
- Those on short term PAYE contracts
- The need for a London weighting for thresholds for support
- The implementation of the IR35 delay
- Support for language schools again
- Support for Business Improvement Districts
Today the Chancellor has announced a new Self-Employed Income Support Scheme.
The government will pay self-employed people, who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last 3 years, up to £2,500 per month, backdated to 1st March. It will be open for at least 3 months across the UK, will be extended if necessary.
You’ll be able to claim these grants and continue to do business. This covers the same amount of income as we are for furloughed employees, who also get a grant worth 80%.
This is only open to those with trading profits up to £50,000, who make a majority of their income from self-employment. To minimise fraud only those already in self-employment, who have a tax return for 2019 can apply.
95% of people who are majority self-employed will benefit from this scheme. HMRC are working urgently to set it up, and expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, and they will pay the grant straight to your bank account.
To make sure no one who needs it misses out on support, the Government have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.
For self-employed people who are struggling now, the Government have made sure that most will be able to access the business interruption loans. I asked UK Finance about this point, and they replied "“sole traders can access the CBIL scheme if they have a business bank account. In addition, UK Finance have brought together the support on offer to customers and businesses on the following webpage that can be accessed here. "
Income tax payments due in July can also be deferred to the end of Jan 2021, and the Government have changed the welfare system so the self-employed can access Universal Credit in full.
You can find more details from the Treasury here: https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals
As ever, I stand ready to assist in individual cases. I can be contacted on firstname.lastname@example.org