Support for the self-employed

The new Self-Employed Income Support Scheme, designed by The UK Government will enable those eligible to receive a cash grant worth 80 per cent of their average monthly trading profit over the last three years. It’s estimated that this covers 95 per cent of people who receive the majority of their income from self-employment.

Individuals will apply directly to HMRC for the taxable grant, using a simple online form, with the cash paid directly into applicant’s bank account.

The scheme will be open to those with a trading profit of less than £50,000 in 2018 to 19 or an average trading profit of less than £50,000 from 2016 to 17, 2017 to 18 and 2018 to 19.

To qualify, more than half of the applicant’s income in these periods must come from self-employment.

Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.

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.

Before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account.

To keep up-to-date with latest developments on the Self Employment Support Scheme, visit the HMRC website.