;
Request a Callback

| Covid-19 Legal Advice - Employment Law - Latest News

Covid-19 & Self-Employed: Guidance on the support scheme

The Chancellor has now confirmed that the Government will be supporting the Self-Employed, but how will this work and what will you be entitled to?

The scheme will be available for at least 3 months which will take us to May 2020, but could be extended subject to review.

The Chancellor did confirm that this scheme will not be accessible until June, but grants will be backdated as a single lump sum.

What does the scheme mean for you?

HMRC will reimburse a taxable grant of 80% of average monthly trading profits over the last three years capped at £2,500.00.

Unlike the Job Retention Scheme, the self-employed will be eligible for this scheme whilst continuing to do business.

Who can take advantage of the Scheme?

The scheme will be available to anyone with trading profits of up to £50,000.00, self-employed people who earn more will not qualify.

You will only be eligible for the scheme if the majority of your income comes from self-employment.

If you pay yourself a salary and/or a dividend you will not be covered by this scheme and should seek advice with regards to the Job retention Scheme if you are operating PAYE schemes.

How will the Scheme assess how much you will be entitled to?

You need to have submitted your tax return for 2019. The Government have confirmed that for those who failed to do so have a further four weeks from 26 March 2020 to do this so that they can also be eligible for the scheme.

How do Businesses take advantage of the scheme?

You are not required to apply for the scheme. HMRC will contact those who are eligible and will offer you to fill in a form for them to pay the grant to you.

Before grant payments are made, you may be eligible for temporary funds which other schemes have to offer.

We all need to help each other and therefore we encourage the self-employed not to exploit this scheme and only use if required during this difficult time.

As you can see, although there is a scheme offered to help in these times of uncertainty, there are still a lot of grey areas and the issue that the support scheme will not be live until June.

If you require assistance from anyone in our Commercial or Employment Teams to assist you and provide legal advice to help you understand the scheme along with any issues that could occur, please do not hesitate to contact us on 01246468468 or fill in the form below.

Request a Callback

Related Articles

  1. Employer’s Guide to Christmas Parties: Location, Decorations, and Preventing Sexual Harassment

    Employer’s Guide to Christmas Parties: Location, Decorations, and Preventing Sexual Harassment

    As of 26 October 2024, a new duty on employers to prevent their staff from being sexually harassed at work…

  2. What to Do If You’ve Purchased a Defective Vehicle

    What to Do If You’ve Purchased a Defective Vehicle

    If you have purchased a vehicle from a car trader or garage, we can assist you and guide you through…

  3. Workplace Christmas Parties: A Guide for Employers and Employees

    Workplace Christmas Parties: A Guide for Employers and Employees

    The Christmas season brings festive cheer and celebration, and workplaces are no exception. Workplace Christmas parties are an opportunity for…

Accept Cookies

We use cookies to personalise content, provide social media features and to analyse our traffic. We also share information about your use of our site with our social media and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services. By using this website, you agree to the use of cookies as stipulated in our privacy policy.

Accept Cookies
;