The UK Government announced assistance for the self-employed on 26th March.
Self-employed people who have been adversely affected by COVID-19 will be entitled to a taxable grant of 80% of average profit over previous 3 years up to £2,500 per month.
Rishi Sunak has stated that for those without three years’ worth of accounts, the Treasury will look at what they do have and go with the information they have.
Those who have not yet submitted tax returns for 31 January 2020 to submit returns within 4 weeks.
It is anticipated that payments will not be paid until early June 2020 however, self-employed people can apply for Universal Credit.
The Government have indicated that there will be a reform of the tax system in the future so that the self employed lose some of their tax advantages.
The scheme is open to any self-employed person with average trading profit up to £50K p.a.
In order to avoid fraud, it will only be open to people who are already self-employed and have a tax return from 2019
It is open to those who make the majority of their income from self-employment.
How to access the scheme
Tax authorities will contact self-employed people directly in relation to the application process.
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