Self-Employment Income Support Scheme:
The Government will pay self-employed people a grant worth 80 per cent of their average monthly trading profits over the last three years, up to £2,500 a month – that’s unlike almost any other country and makes our scheme one of the most generous in the world. The grant will be paid out in a single instalment covering 3 months (March, April and May) and is capped at £7,500 altogether. The value of the grant is based on a 3-year average of trading/partnership trading profits, from the tax years 2016-17 to 2018-19.
We will introduce a fourth grant covering the period February to April, worth 80 per cent of people’s average monthly revenues. From May, a fifth grant will be available which is more targeted towards those most affected by the pandemic: people whose turnover has fallen by more than 30 per cent will receive the 80 per cent grant, while those whose turnover has fallen by less than 30 per cent will receive a 30 per cent grant. And we will ensure that the more than 600,000 people, including many who became self-employed last year, and filed their 19/20 tax return by 2 March, will now be eligible for both grants. Overall, we will have spent £33 billion on the self-employed, among the most generous anywhere in the world.
Time to Pay (HMRC)
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. This support is available now, and arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
HMRC has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by the 1st of April 2021.
HMRC has also set up a helpline to support businesses and self-employed people concerned about not being able to pay their tax due to Coronavirus. Anyone who is running a business or is self-employed and is concerned about paying their tax due to COVID-19 (Coronavirus), can call HMRC’s helpline for help and advice: 0800 024 1222.
Further Self-Employment Support
For self-employed people, the Government has also:
- deferred income tax self-assessment payments for July until the end of January 2021
- suspended the minimum income floor for twelve months, meaning self-employed people can now access Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees.
- Those on contributory ESA will be able to claim from day 1, instead of day 8. The Government has relaxed the requirement to physically attend a jobcentre, everything can be done by phone or online.
- Many self-employed people will also be able to access loans through the Coronavirus Business Interruption Loans Scheme.
- See 'support for individuals' page for further avenues of financial support such as help with mortgages and energy bills.
To quickly and easily find out about what financial support you may be available for, use the Government's Coronavirus Business Support Finder, https://www.gov.uk/business-coronavirus-support-finder
Page Last Updated: 03/03/21.