COVID-19: Self-Employed Income Support Scheme
- AuthorJulie Temple
The Chancellor announced on 26 March 2020 direct cash grants to the self-employed. This is 80% of the average monthly trading profit over the last three years and up to £2,500 per month for at least 3 months.
About the Self-Employed Income Support Scheme
- Claims will be by direct application to HMRC 'using a simple online form' and the money paid directly into people’s bank accounts.
- The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19 and more than half their income in these periods must come from self-employment.
- HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
- The scheme will cover the three months to May.
- Payments will be in a single lump sum instalment covering all 3 months.
- Payments will start to be made from the beginning of June.
- Individuals who pay themselves a salary and dividends through their own company are not covered. They will fall within the Coronavirus Job Retention Scheme.
- The scheme also applies to members of partnerships.
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