Source: HM Treasury
The Chancellor has set out plans that will see the self-employed receive up to £2,500 per month in grants for at least 3 months.
What is it?
The scheme will be open to those with a trading profit of 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.
The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June.
Am I Eligible?
To qualify, more than half of their income in these periods must come from self-employment.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
This scheme also applies to members of partnerships.
How do I get it?
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
From the Chancellor's speech
Source: HM Treasury
95% of people who are majority self-employed will benefit from this scheme.
HMRC are working on this urgently and expect people to be able to access the scheme no later than the beginning of June.
If you’re eligible, HMRC will contact you directly, ask you to fill out a simple online form, then pay the grant straight into your bank account.
And to make sure no one who needs it misses out on support, we have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.
But I know many self-employed people are struggling right now, so we’ve made sure that support is available.
Self-employed people can access the business interruption loans.
Self-assessment income tax payments, that were due in July, can be deferred to the end of January next year.
And we’ve also changed the welfare system so that self-employed people can now access Universal Credit in full.
A self-employed person with a non-working partner and two children, living in the social rented sector, can receive welfare support of up to £1,800 per month.
The scheme I have announced today is fair.
It is targeted at those who need it the most.
Crucially, it is deliverable.
And it provides an unprecedented level of support for self-employed people.