Covid-19: Self-Employed Offered Rescue Package

Earlier this week the government announced a rescue package aimed to assist over 5 million self-employed people in the UK.

Who is it for and how to apply:

• If you have suffered a loss in income, you will receive a taxed grant of 80% of your average monthly profits up to a £2,500 for an initial three months period
• Any claims must be declared on tax returns by January 2022
• Applications will be calculated based on the trading profit of less than £50,000 in 2016-17, 2017-18 and 2018-19
• To qualify more than half of the income in these periods must come from self-employment
• You will be able to continue to work while you receive support HMRC will inform eligible people and invite applications
• If you are recently self-employed and without a full year of accounts, you will not receive any help under this scheme
• Company owners who pay themselves a dividend are not covered

Too little, too late?

Unlike the employees’ rescue package, the self-employed will have to wait until June for the grant money to be paid into their accounts.

For more immediate relief, there is the option to apply for the Universal Credits.

Even though the announced support was welcomed by the Confederation of British Industry and British Chamber of Commerce, the main concern is that for many, the help will not be adequate or it will arrive too late.

If you need help with understanding available options or planning the future, contact us for a free consultation on 0800 118 2948.

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