This evening the Chancellor outlined the additional support to be made available to those who are self-employed, who find that they are unable to work as a result of Covid-19.
The scheme the Chancellor has announced today is fair. It is targeted at those who need it the most. And crucially, it is deliverable:
We are launching the Self-Employed Income Support Scheme, to make sure people who work for themselves are getting the financial support they need. The Government will pay self-employed people across the whole UK who have been adversely affected by coronavirus a grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month, for three months – but we will extend it for longer if necessary.
We will make it simple for self-employed people to get the financial support they need. Self-employed people who are eligible will be contacted by HMRC directly, asked to fill out a simple online form, and HMRC will pay the grant directly into their bank account. We expect people to access the scheme by the beginning of June.
We are ensuring our support reaches those self-employed people who are most in need of it. The scheme will only be open to those with trading profits up to £50,000, leaving 95 per cent of people who are majority self-employed eligible for the scheme. HMRC will also ask people to demonstrate that the majority of their income comes from self-employment, and, to minimise fraud, only those who are already in self-employment, and who have a tax return for 2019, will be able to apply.
This builds on the support that is available to self-employed people:
For self-employed people who are struggling now, we’ve also made sure that many will be able to access loans through the Coronavirus Business Interruption Loans Scheme. This scheme provides loans of up to £5 million, which will be interest free for twelve months.
Supporting people through the welfare system so that nobody is penalised for doing the right thing. We will make it quicker and easier to access benefits. Those on contributory ESA will be able to claim from day 1, instead of day 8. And we are relaxing the requirement for anyone to physically attend a jobcentre – everything can be done by phone or online.
Suspending the minimum income floor for twelve months – meaning self-employed people can now access, in full, Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees.
Deferring income tax self-assessment payments for July until the end of January 2021.
You can read the full speech made by Rishi Sunak HERE.