The Money and Pensions Service give advice to the self-employed in response to new scheme

Rishi Sunak has unveiled a new support scheme for the self-employed. Millions will soon be able to claim a cash grant that will cover up to 80 percent of their profits, up to a maximum of £2,500 per month. This will be welcome news, especially by self-employed workers who have had their economic support delayed.


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The government detail that the new qualifying rules for self-employed income support scheme will cover 95 percent of people who receive the majority of their income from self-employment.

Despite this positive news, some have been critical of the new scheme.

Many are unhappy with the time frame put in place, claimants may not receive any support until June.

This means that many people will need to find a way to cover their bills for a further three months or so, which will be tricky in the current circumstances

Nick Hill, a Money Expert for the Money and Pensions service, commented on the current situation: “This is an extremely worrying and uncertain time for everyone, and particularly people who work for themselves.

“While the package announced by the government is being put in place, there are still steps the self-employed can take to help shore up their finances, and protect themselves as much as possible from financial problems right now and further down the line.

It is a worrying time for many but it is always worth taking a deep breath and taking stock of plans: “Hard as it is, the most important thing, now more than ever, is to take a moment to assess all your outgoings, talk to your creditors, and check whether you can access savings which would normally be locked away.

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“If after that you are still worried about making ends meet, make sure you have fully considered all your options before looking at credit products to plug any gaps, and that you have understood the terms and conditions and know how much you will have to pay back in future.”

Fortunately, the new advisory service put forward five key steps that the self-employed can take to get on top of things:

Do an emergency budget

This should be a priority for many people, regardless of their employment situations.


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Fortunately, the Money and Pensions Service have a free budgeting planning tool that can be used to break down finances to help identify where cuts can be made.

Check your insurance policies.

Policies such as mortgage payment protection and accident and unemployment insurance may offer protection.

It is worth checking on what kind of policies are applicable.

Check what support is available from your financial providers

Many companies like banks are offering emergency support and taking measures such as temporarily cutting overdraft fees.

It’s worthwhile speaking to lenders now to discuss options.

Speak to your creditors

Mortgage lenders have announced support for those affected by coronavirus, and the Government has also brought in more protection for renters.

For utilities such as gas and electric, the service advises speaking to providers as soon as possible if it likely that payments will be missed.Prepare to use your emergency savingsSome banks and building societies are now making it easier for people to access particular accounts such as fixed rate accounts before maturity.

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