Self employed coronavirus help: When will payments be made to self employed?
Chancellor Rishi Sunak announced a number of financial relief packages for UK businesses during the COVID-19 pandemic. Along with the coronavirus job retention scheme, the Self-Employment Income Support Scheme has been introduced to keep people earning up to 80 percent of their current salaries.
What support is available for self-employed people at this time?
The Government has recently announced the Self-Employment Income Support Scheme.
Under the scheme, you will be able to claim a taxable grant of 80 percent of your average monthly trading profits.
The payment covers three months and is capped at £7,500.
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Like the coronavirus job retention scheme, the self-employment scheme is currently in place for three months but could be extended if required.
The Government will calculate the taxable grant based on your average trading profit over the 3 tax years: 2016 to 2017; 2017 to 2018 and 2018 to 2019.
The Government will then work out your average trading profit by adding together your total trading profits or losses for the three tax years, then dividing it by three.
In addition to the scheme, there are other options available if you need financial assistance at this time.
The Government has introduced a deferral of Self Assessment Income Tax and VAT payments at this time.
There are also grants for businesses that pay little to no business rates.
There is also the option of a Business Interruption Loan Scheme, and a Bounce Back Loan should you require them.
If you are not eligible for the above benefits, you may be eligible for Universal Credit.
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When will payments be made to self-employed people?
The Self-Employment Income Support Scheme pays out in one single instalment.
However, the online service to make a claim to this scheme is not yet active.
HMRC is aiming to contact people eligible for the scheme by mid-May 2020.
If your claim is approved payment will be made by early June 2020.
The Government outline on their website you will be told straight away if your grant has been approved.
The grant will be paid directly into your bank account within six working days.
You will need to keep a record of the grant for future tax documentation.
While waiting for the grant, you can also claim for Universal Credit if you need to.
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