Coronavirus Update – Self-Employed Income Support Scheme

The Chancellor has today announced details of the scheme to support self-employed businesses through the Coronavirus outbreak.

Here’s a summary of the details:

A taxable grant will be available, offering 80% of the average monthly profits over the last 3 years, up to a maximum of £2500 per month.

The scheme will last for at least 3 months, to be extended if necessary.

Self-employed people can continue to do business while the scheme is in operation.

The scheme is open to anyone with trading profits up to £50,000 who make the majority of their income from self-employment.

You must already be registered as self-employed and have a tax return for the 2018-19 tax year.

Anyone who missed the January 31st deadline for filing this tax return will be allowed 4 weeks from today to submit their return with HMRC to become eligible for the scheme.

HMRC will contact you and ask you to complete an online form, and will pay the grant directly into your bank account.

Funds are expected to be available from the beginning of June at the latest, but payments will be backdated to March 2020 in line with the support scheme for employees, so three months’ payments may be made in one go.

In the meantime, self-employed people have access to the Business Interruption Loans and Universal Credit.

Self Assessment payments on account that were due to be paid by 31 July 2020 can now be deferred until 31 January 2021.

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