Chancellor gives support to millions of self-employed individuals

British airlines are left without a safety net as the government confirms there will be no industry bailout

British airlines are left without a safety net as the government confirms there will be no industry bailout

Millions of people across the United Kingdom could benefit from the new Self-Employed Income Support Scheme, with those eligible receiving a cash grant worth 80% of their average monthly trading profit over the last three years.

Now Chancellor Rishi Sunak has announced measures to support them too.

The scheme will also only be available to those who make the majority of their income through self-employment, and who have a 2019 tax return proving their self-employed status. 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.

More than half of a claimant's income needs to come from self-employment.

It comes as 468 people who tested positive for coronavirus have now died in the UK.

These include a strengthening of the welfare safety-net with a £7 billion boost to Universal Credit, income tax and VAT deferrals, £1 billion more support for renters and access to three-month mortgage holidays. "But I am confident that the measures we have put in place will support millions of families, businesses and self-employed people to get through this, get through it together, and emerge on the other side, both stronger and more united".

If you pay yourself a salary and dividends through your own company, you are not covered by the scheme but will be covered for your salary by the Coronavirus Job Retention Scheme if you are operating through PAYE.

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Yoon said most religious venues turned to online services and most others complied with new rules on distance between people at gatherings.

How many people are affected?

The number has risen fast since the financial crash of a decade ago.

She also said: "With so numerous self-employed facing a collapse in their earnings the Chancellor is right to act".

The IFS research indicated that 23 per cent of self-employed workers were in relative poverty in 2017-18 after housing costs were deducted, compared with 11 per cent of employees.

Claimants must be now self-employed and have a tax return for 2019.

"Government already has a very simple way of identifying freelancers who it believes work broadly in the same way as employees and are likely to be of high risk of needing urgent support".

The government says 80% of gross wages in the private sector, up to £2,500 a month, for those not working and who would otherwise have been laid off will be covered by these grants from HM Revenue and Customs (HMRC). The scheme will be open for at least three months and self-employed people can continue to do business. The idea is to prevent mass unemployment.

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