Chancellor reveals a Self-employed Income Support Scheme

This evening Chancellor Rishi Sunak announced the Government’s Self-employed Income Support Scheme to help those who are self-employed during the Covid-19 crisis.

Before announcing the scheme, the Chancellor described it as the “next step in the economic fight against the Coronavirus pandemic”. The scheme will offer those who are self-employed a taxable grant of 80% of their average monthly profits over the last three years, up to a maximum £2,500 per month. Those claiming the grant will be allowed to make a claim and continue to do business. The grant is expected to last three months.

To be eligible for the grant those who are self-employed need to have a trading profit of up to £50,000 per year, earn the majority of their income through self-employment and will need to have had a tax return for the 2018/2019 tax year. Those who have missed the tax return deadline in January will have four weeks from today to send in their tax return.

The grant will be available from the beginning of June. Those who are eligible will be contacted directly by the HMRC and will need to complete a form. The grant will be paid directly into their bank account.

In addition to this, those who are self-employed will be able to access the Business Interruption Loan and can also apply for full universal credit.

This announcement is the latest in a number of measures the Government has introduced to help consumers and businesses financially through the Coronavirus crisis. To find out more about how the Government has introduced measures to help consumers read our news story Coronavirus restrictions: how to prepare your finances.

For businesses the Government has introduced a wide range of measures including its Coronavirus Business Interruption Scheme, Coronavirus Small Business Grant Fund and the Coronavirus Business Interruption Loan. Information on how to apply for these grants and loans can be found by reading our previous stories How to apply for the Coronavirus Small Business Grant Fund and How to apply for a Coronavirus Business Interruption Loan.

Read our guide to What to do if you can't wait for the Self-employed Income Support Scheme to pay.