Rishi Sunak has announced a £3bn-a-month package of support for the self employed workers affected by the coronavirus. He referred to the scheme as “one of the most significant economic interventions” from a UK Government.
- The scheme will pay a cash grant that is worth 80% of average monthly trading profit over the past 3 years.
- This will be capped at £2,500 a month.
- At least 50% of their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January. If you missed this deadline, you now have 4 weeks from now to get it done and still qualify. Contact us here.
- Higher earners making profits above £50,000 will lose out on this scheme as it is only open to those who earn under this threshold. Mr Sunak said it was “reasonable, proportionate and fair” to exclude those with taxable profits above £50,000.
- The self employed can still work, as delivery drivers for example, and still receive this support.
- Company owners who pay themselves a dividend
- The grants will be taxable, and will need to be declared on tax returns by January 2022.
- The money, which will be backdated to March, will be available from June.