Following the announcement of the job protection scheme for employees who have been released from work as a result of the coronavirus, the self-employed have been waiting to hear what help they will receive.
Details of grants for the self-employed have now been announced. The amount of the grant is similar to that for employees - 80% of earnings, up to £2,500 per month. The grant can be claimed by the self-employed whether they work on their own or in a partnership.
The announcement limits grants to those with self-employed profits of less than £50,000 in 2018/19 (or as an average over the tax years 2016/17 to 2018/19). In addition, at least half of the claimant's earnings must be from self-employment and so those with significant employment income will not qualify.
The cliff-edge earning's limit is unfortunate for anyone who earned just over £50,000, it remains to be seen whether, once the detail is published, HMRC will introduce phased withdrawal for those with profits above £50,000.
It is important that anyone who has not completed a tax return to do so if they want to be included in the scheme based on their recent earnings. This is especially the case if they have only just started out in their business and so HMRC does not have a record of their being self-employed.
HMRC will use their own records to determine who is eligible for a grant and are asking people not to contact them for the moment as it will only delay the implementation of the scheme. They also warn against following email or text links to scamming sites - the scheme will only be available through the gov.uk website
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-schemeClaim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme