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Self Emplyoment Support

Chancellor Announces Support for Self Employed

Friday 27th March 2020

Last night the Chancellor announced a COVID-19 support package for the self-employed.  

It will pay up to £2,500 per month with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years.

The income support scheme, which is being designed by HMRC from scratch, will cover the three months to May. Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June.  HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.

The limited detail available now is here on the government site.

This is a welcome move for many in the Trade but leaves a challenge until the first payment is made in June.  However, also in the announcement, it was confirmed that sole traders would be entitled to use the Corona-virus Business Interruption Loan Scheme (CBILS).  This gives companies and sole traders with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years. The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.  Details are available from the state-owned British Business Bank here.

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