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Covid-19: Self-employed Income Support Scheme

29th March 2020

Covid-19: Self-employed Income Support Scheme

The Chancellor, Rishi Sunak, announced the Self-employed Income Support Scheme (‘the Scheme’) on 26 March 2020 to offer financial assistance to the self-employed during the coronavirus pandemic.

This brings parity with the Coronavirus Job Retention Scheme, under which the government will pay 80% of employees’ wages up £2,500 each month for those employees who are ‘furloughed’. See our update on furloughing for more information: 

https://www.higgsandsons.co.uk/latest/2020/03/31/covid19-furloughing-faqs/

What help is being offered?

A direct cash grant of 80% of the individual’s average trading profits over the last three years, up to £2,500 per month, for at least three months.

The grant will be paid as a lump sum for the period from March to May. The government intends the grants to be paid at the beginning of June.

Who is eligible?

Individuals who meet the following requirements:

  • trading profits 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;
  • more than half of their income in these periods comes from self-employment; and
  • they are already in self-employment.

What help is available right now?

Self-employed individuals will be able to access other measures announced by the Chancellor whilst the Scheme is being rolled out.

These include:

  • a £7 billion boost to Universal Credit;
  • income tax and VAT deferrals; and
  • £1 billion more support for renters and access to three-month mortgage holidays.

If you need support with any employment issues, please get in touch with our head of employment, Tim Jones, via phone 07815 167206 or email tim.jones@higgsandsons.co.uk   

For help and support with any other personal or business legal issues during the Covid-19 crisis, please call us on 0345 111 5050 or email supportingyou@higgsandsons.co.uk

 

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