The Chancellor has just announced a new Self-Employment Income Support Scheme to help the self-employed through the coronavirus pandemic.
Whilst we don’t have the full details of the scheme yet, the key points to note are….
• A grant will be payable to the self-employed to cover 80% of monthly profits
• This will be calculated using the average profits for the past 3 years
• Capped at £2,500 per month
• The system is expected to be live in June – please be aware of this for your cashflow
• Self-employed with trading profits above £50,000 appear to be excluded
• Newly self-employed persons since April 2019 appear to be excluded
• Self-employed can continue to work whilst in receipt of the grant
• HMRC will contact the self-employed directly in order to make a claim
• It appears that this still ignores Directors of limited companies who are paid a basic salary with the balance as dividends – but we will await the guidance for confirmation
I will be reading the full details when published and be updating our clients with a full overview ASAP.
In the interim if you have any queries or concerns please don't hesitate to drop me a line.
Steven Hillman ACA