New financial help for the self-employed

Tonight’s announcement from the Chancellor has been long-awaited.

 

Last week we heard of the Coronavirus Job Retention Scheme, and the self-employed have been waiting since then for something similar. It has been an anxious time, but tonight’s announcements brought new financial help.

So here are the details that we know:

  • You will be funded under the Self Employed Income Support Scheme.

How do I apply?

What will I receive?

  • 80% grant will be calculated on 3 years’ average profits to 5 April 2019.
  • You will receive an advance payment as soon as you apply.
  • Initial grant will cover the 3 months to 31 May 2020, but will be reviewed if necessary.
  • Grants will be up to £2,500 per month (same as the employed funding).
  • Grants are calculated on 80% of your average profits over the last 3 years, or less, if you started self-employment in the 3 years to 5 April 2019.
  • Grant will be available early June, and will be backdated to 1 March 2020.
  • It’s a non-repayable grant, but taxable.
  • You will receive an advance payment as soon as you apply.
  • Initial grant will cover 3 months to 31 May 2020, but will be reviewed if necessary.
  • Grants will be up to £2,500 per month (same as the employed funding).
  • You can still work and claim.

Who can’t apply:

  • If you have started trading since 5 April 2019 there is no way to work out your profits without risking fraudulent claims.
  • If your average profits are over £50,000 you can’t claim.
  • Directors should claim the Job Retention Scheme Grant for their salary.
  • Dividends will not come into the claim.
  • Apply for Universal Credit (see below). if you’re not eligible for for the self employed grant.

What do I do in the meantime?

  • Use the July payment on account you have saved, as this is not due until January 2021.
  • Apply for a Coronavirus Business Interruption Loan.
  • Do anything you can that’s safe to generate work and an income.
  • This may mean using your imagination! How else can you encourage customers to buy from you?
  • Apply to extend your bank overdraft. All major banks are giving better interest rates, and extending overdrafts.

What if I can’t claim?

  • You should apply for Universal Credit.
  • You will receive an initial advance once you’ve got your Universal Credit claim through.
  • You will need to pay back your initial advance.
  • Allowances have been increased, and if you also claim housing allowance, you could receive up to £1,800.

I’m employed. What help is there for me?

What else do I need to know?


We’re here for you.

Please get in touch on any of the above, or if you’d just like a chat, or call the office on 01432 273400.

We’re all working from home now, but your message will be passed straight to the right team member.

If you’d prefer to book a time to speak to me, I’ve freed up more time in my calendar for 30 minute zoom calls.

Please find and book a slot here.

You can also call, text or WhatsApp me on 07813 303849.

 

Stay Strong. Stay Safe

 

Sharon