#AceFinanceReport – Mar.26: self-employed workers can apply for a grant worth 80% of their average monthly profits to help them cope with the financial impact of coronavirus, the chancellor has announced: The money – up to a maximum of £2,500 a month – will be paid in a single lump sum, but will not begin to arrive until the start of June at the earliest………………Rishi Sunak told the self-employed: “You have not been forgotten.” ………..Wage subsidies of 80% for salaried employees were announced last week:
U.K. Chancellor unveils aid for 95% of people earning an income via-self-employment self-employed with grant aid
The government had faced criticism for failing to provide support for self-employed and freelance workers in its earlier huge package of economic measures: Mr Sunak said the steps taken so far were “already making a difference” but it was right to go further “in the economic fight against the coronavirus”
Terms and Conditions:
- Self-employed people will be able to apply for a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.
- At least half their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January – anyone who missed the filing deadline has four weeks from now to get it done and still qualify.
- The scheme is open to those who earn under £50,000 a year – up to 3.8 million of the 5 million people registered as self-employed.
- Unlike the employee scheme, the self-employed can continue to work as they receive support.
- The money, backdated to March, will arrive directly into people’s banks accounts from HMRC, but not until June.
- The grants will be taxable, and will need to be declared on tax returns by January 2022.
- Company owners who pay themselves a dividend are not covered.
The scheme does not cover people who only became self-employed very recently – the chancellor said they would have to look to the benefits system for support: Coming up with a workable scheme had been “difficult”, he said, because the self-employed were a “diverse population” and some of them earned a great deal: But in all, the “fair, targeted and deliverable” plan would help 95% of people who earn most of their income via self-employment: “We have not left you behind, we all stand together,” he added:
The Federation of Small Business, which represents many self-employed workers, welcomed the intervention, saying: “Although the deal is not perfect, the government has moved a very long way today.”
In recent days, Treasury ministers appeared to be trying to dampen down expectations, telling MPs it was problematic to establish a fair scheme, and the employee job retention scheme would be the logistical priority: The government wants to set up the scheme to keep employed jobs as the priority first: So the banks will need to be relied on to support many of these self-employed with overdrafts to tide them over till the grant goes in their bank accounts in about 10 weeks’ time.
#AceFinanceDesk report ………….Published: Mar.26: 2020:
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