Support for the Self-Employed

On 26 March the Chancellor announced his plan to help self-employed individuals who are at risk of losing their livelihoods due to the Coronavirus.

There is already a job retention scheme in place for the UK’s 28 million employees, as well as a number of schemes to support businesses. The government has been pressured to introduce similar measures to protect the 5 million self-employed in the UK.

The new self-employed income support scheme is targeted at those on lower incomes who have faced a large fall in demand for their services due to government ordered closures and social distancing. It is expected that it will help about 95% of self-employed individuals in the UK.

Whilst further information and details of the scheme are yet to be shared by HMRC, we have set out a summary of the initial guidance and answered some key questions below.

Key Questions Answered

• Who qualifies for the scheme?
• What am I entitled to?
• What if I have been self-employed for less than 3 years?
• How long will the scheme be in place for?
• Can I continue to work?
• What do I need to do to apply?
• What if I have not filed my self-assessment tax return for 2018-19?
• When will the grant be made available and how will I be paid?
• What if I am struggling with cash flow at the moment?
• I pay myself a salary and dividends through my own company, can I apply?
• Was there a sting in the tail?