We have a huge number of self-employed florists in the UK and so therefore its not surprising that the BBC’s website includes pictures of flower sellers rather than hairdressers or any other retail sector.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.
To qualify, more than half of their income in these periods must come from self-employment.
To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.
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.
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
The scheme has been designed after extensive engagement with stakeholders including the TUC, the Federation of Small Businesses and IPSE – The Association of Independent Professionals and the Self-Employed.
Self-employed individuals are already benefiting from a series of measures announced by the Chancellor to boost household incomes and will be able to access these while the new scheme is being rolled out.
Notes
- further information and details of the scheme will be shared shortly by HMRC
- HMRC will use the average trading profits from tax returns in 2016-17, 2017-18 and 2018-19 to determine the size of the grant
- this scheme also applies to members of partnerships
- before grant payments are made, the self-employed will still be able to access other available government support for those affected by coronavirus including more generous universal credit and business continuity loans where they have a business bank account
Self Employed update from Kevin Foster MP
”Many people have contacted me over the last few days seeking information about what support the Government can give to those people who are Self-Employed during the COVID-19 Pandemic.
I have spoken with a number of businesses and been in contact with the Chancellor’s team, as have many other MP’s about the need to extend the principles of the support scheme announced for employees to those who are self-employed.
After days of careful consideration and drawing up of plans the Chancellor has made a statement today setting out his proposals for what the Government will do. He made clear this vital sector of our business community have not been forgotten, yet given it is the widest and most varied part of the economy putting together a package had taken longer. The scheme has been designed after extensive engagement with groups such as the TUC, the Federation of Small Businesses and IPSE – The Association of Independent Professionals and the Self-Employed”
Here is a precis of what the chancellor said – but if you would like to hear the full statement then please click on this link – https://www.facebook.com/10downingstreet/videos/775821262947813/
You can also read more on the Government Website by following this link:
https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals
