The UK Government has announced a package of support for the Self Employed impacted by the Coronavirus outbreak, bringing support to the same level as that for employees.
The Self-employment Income Support Scheme will pay a taxable grant of 80% of average annual profits over the last 3 years up to £2,500 per month. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
The most recent information on the support announced by the UK Government can be found on their website.
This week HMRC will start contacting customers who may be eligible for the new Self-Employment Income Support Scheme. The scheme will allow customers to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits.
Customers can claim if they’re a self-employed individual, or a member of a business partnership, their business has been adversely impacted by coronavirus.
Customers can check eligibility using the self-employed checker tool.
*Individuals should not contact HMRC, if eligible, you will be contacted*
Those who pay themselves a salary and dividends through their own company are not covered by the Self-employment Income Support Scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes. Employers can apply for direct cash grants through HMRC’s new online portal – with the money expected to land in their bank accounts within six working days.
The link to the online portal can be found here https://www.gov.uk/government/news/coronavirus-job-retention-scheme-up-and-running
You can make a claim for Universal Credit while you wait for the grant. You should record the grant as part of your self-employment income, and it may affect the amount of Universal Credit you get. This will not affect Universal Credit claims for earlier periods.