Yesterday the government announced its support for the self-employed.  They had previously advised that the self employed were a big group ad they were struggling to help everyone.  It appears they have come up with a plan to only help one group. 

New help is available for the self-employed who can meet the following conditions:- 

1. Submitted a 2019 personal tax return reporting self-employed income.  There is a 4-week extension for those who are late, to get their returns submitted. 

1. Self-employed profits do not exceed £50,000 

1. Self-employment is your main source of income 

1. You are still self employed 

What you can get 

The offer is of a taxable grant, equivalent to the lower of 80% of your average monthly self-employed profits over the last 3 years and £2,500.   

Initially this is to be for 3 months, back dated to 1st March, first payable in June 

Unlike the furlough scheme for employees – the self employed can claim this grant and continue to work. 

HMRC are going to write the systems, after they have sorted out furlough workers systems.  HMRC should then invite eligible self-employed workers to apply in June by completing an eligibility form. 

The chancellor implied that national insurance contributions for the self employed may go up in the future to recompense the government for their generosity in providing this support. 

The Newly Self Employed 

The chancellor advised that those who had not got 3 years accounts, may be assessed on a shorter period. 

No support is being offered to those who commenced self-employment after 6th April 2019. 

 

 

Operating Through a Limited Company 

No specific support is being offered for those freelancers operating through a limited company.  

In a few circumstances they may be eligible for sick pay or to be furloughed under the Coronavirus Job Retention Scheme, but there is no other specific support. 

These workers have seen the delay in the introduction of Off payroll working rules which has been attributed to Coronavirus.   

In all other respects such freelancers are in the governments bad books and they are not being offered support. 

 

Summary of Help for Businesses:- 

If you have business premises  

• Business Rates Holiday for all retail, hospitality, leisure and nursery businesses in England 
• Grants of £10,000 for those in receipt of small business rates relief 
• Grants of £10,000 for those in receipt of rural rates relief 

• Grants of £25,000 for retail, hospitality and leisure businesses a rateable value between £15,000 and £51,000 

If you have staff 

• Coronavirus Job Retention Scheme – a subsidy of 80% of employee costs for furloughed employees up to £2500 pm per employee (instead of laying them off) 
• Statutory sick pay recovery – up to 2 weeks per employee for small businesses 

If you are an established basic rate, primarily self-employed earner 

• a taxable grant of up to 80% of average profits up to £2500 pm 

 

Borrowing 

• VAT payment deadlines in period 10th March to 30th June deferred for 3 months 
• Self Assessment payments on account due 31st July 2020 deferred to 31st January 2021 

• Coronavirus Business Interruption Loan Scheme – with payment holidays and 12 months interest paid by the government