COVID-19: Statutory self-employment pay scheme

COVID-19: Statutory self-employment pay scheme

The Coronavirus Bill includes provisions for a proposed scheme of statutory pay for the self-employed. Those measures have been changed: the chancellor announced the following new measures on 26 March 2020:

Support for the self employed (not available for Directors of OMBs:

A taxable grant of 80% of average monthly profits over the past three years.
Capped at £2,500 per month.

For 3 months initially.

Applies to self-employed individuals with trading profits up to £50,000 per year whose majority of income comes from being self-employed.

You must be registered as self employed and have filed a 2019 tax return.

For those who missed the 31 January 2020 return deadline there is now a 4 week period in which to file one.

The scheme is expected to commence paying out in June 2020.
"HMRC are working on this urgently and expect people to be able to access the scheme no later than the beginning of June."

HMRC will contact registered taxpayers, ask you to fill in a simple online form and the grant will be paid directly into your bank account.

The scheme allows you to continue to trade /work if at all possible. "You’ll be able to claim these grants and continue to do business."

The comparable Employee Job Retention scheme for employees will apply to furloughed workers, including furloughed Directors laid off during the crisis and has a cap of £2,500 per month.

Other available measures -

Self employed individuals are also urged to apply for increased availability of Universal Credit available to them.

Delay payments of tax due to HMRC

Contact your landlord / letting agent (rent payers) -

See further guidance for tenants

Contact your bank / mortgage lender (property owners) to discuss a payment holiday.

External links -

HMRC Guidance -

Claim the coronavirus covid 19 self-employment income support scheme grant

Chancellor gives support to millions of self employed individuals

Chancellor’s statement 26 March 2020

Coronavirus Bill 23 March 2020