Support for the self-employed, contractors, freelancers and ‘gig economy’
The government’s coronavirus (COVID-19) Self-employed Income Support Scheme was developed for self-employed residents who had lost income due to the pandemic.
The scheme allowed self-employed residents to claim a taxable grant worth 80% of their trading profits up to a maximum of £2,500 per month for March, April and May 2020. Applications for this grant are now closed.
The scheme has been extended. Those eligible will be able to claim a second and final taxable grant in August. The grant will be worth 70% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. You can make a claim for the second grant if you are eligible, even if you did not make a claim for the first grant. Find out more here.
A number of updates have been made to the scheme guidance:
- New guidance is available if you have been overpaid, made a claim in error and were not eligible for the grant or would like to make a voluntary repayment.
- Guidance that indicates how HMRC works out trading profits and non-trading income has been updated to include that losses are not included in your non-trading calculation.
- Guidance on how different circumstances affect the scheme has been updated to include what supporting evidence you may be asked for if having a new child affected the trading profits you reported for the tax year 2018 to 2019.
Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021. No penalties or interest for late payment will be charged in the deferral period.
If you are a ‘gig-economy’ or zero hours contract worker you may be eligible for Statutory Sick Pay – check your eligibility.
If you are not entitled to Statutory Sick Pay, you may be eligible for benefits such as the Employment Support Allowance (ESA) or Universal Credit. Please contact your local Jobcentre Plus for claims for either Universal Credit or ESA.
Community Wealth Building
Find out what support the government has made available to businesses in response to the Coronavirus pandemic.Community Wealth Building Business Bulletin (PDF)