We use cookies for monitoring visitor numbers only and we do not store any personal details. Learn more...

Member helpline 01738 448325

Perthshire Chamber of Commerce

Coronavirus: Rishi Sunak announcement on UK government aid for self-employed

Self-employed workers can apply for a grant worth 80% of their average monthly profits to help them cope with the financial impact of coronavirus, the chancellor has announced.

The money - up to a maximum of £2,500 a month - will be paid in a single lump sum, but will not begin to arrive until the start of June at the earliest.

Rishi Sunak told the self-employed: "You have not been forgotten."

Wage subsidies of 80% for salaried employees were announced last week.

Shortly after the chancellor spoke, the number of people in the UK who have died with Covid-19 - the disease caused by coronavirus - jumped by more than 100 in a day for the first time.

The total now stands at 578.

The government had faced criticism for failing to provide support for self-employed and freelance workers in its earlier package of economic measures.

Mr Sunak said the steps taken so far were "already making a difference" but it was right to go further "in the economic fight against the coronavirus".

  • Self-employed people will be able to apply for a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.
  • At least half their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January - anyone who missed the filing deadline has four weeks from now to get it done and still qualify.
  • The scheme is open to those who earn under £50,000 a year - up to 3.8 million of the 5 million people registered as self-employed.
  • Unlike the employee scheme, the self-employed can continue to work as they receive support.
  • The money, backdated to March, will arrive directly into people's banks accounts from HMRC, but not until June.
  • The grants will be taxable, and will need to be declared on tax returns by January 2022.
  • Company owners who pay themselves a dividend are not covered.

The scheme does not cover people who only became self-employed very recently - the chancellor said they would have to look to the benefits system for support.

Coming up with a workable scheme had been "difficult", he continued, because the self-employed were a "diverse population" and some of them earned a great deal.

But in all, the "fair, targeted and deliverable" plan would help 95% of people who earn most of their income via self-employment.

"We have not left you behind, we all stand together," he added.

Communities Secretary Robert Jenrick later told the BBC's Question Time that even where self-employed workers were unable to provide full financial records going back three years, the government was urging people to "give us what they've got and we will work through it with HMRC to see if there's a way to support you".

The Federation of Small Business, which represents many self-employed workers, welcomed the intervention, saying: "Although the deal is not perfect, the government has moved a very long way today."

But Labour's shadow chancellor John McDonnell said he was worried the money would come "too late for millions".

"People need support in the coming days and fortnight... there is a real risk that without support until June the self-employed will feel they have to keep working, putting their own and others' health at risk."

Labour leader, Jeremy Corbyn, said the government had been too slow to recognise the severity of the crisis.

Coronavirus: Jeremy Corbyn says government has been "too slow"

Torsten Bell, from think tank the Resolution Foundation, said the very significant package stood in "stark contrast" to the "much less generous" support being given to employees who lose their jobs or see their hours cut during the crisis.

 

In this section


More information

 Contact

 News

 Directory

 Join

 Events

 Lobbying

 Benefits

 Developing the Young Workforce

 Photo Gallery

 Star Awards

 Privacy Notice

 PCC: International Trade Survey 2020 Q1

© 2020 Perthshire Chamber of Commerce | Registered in Scotland 21856 | VAT No: 270 6586 43 | Website by Broxden