This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/business-52052123

The article has changed 8 times. There is an RSS feed of changes available.

Version 1 Version 2
Coronavirus: What help will self-employed get from government? Coronavirus: What help will self-employed get from government?
(32 minutes later)
Employees kept on by struggling businesses during the coronavirus outbreak will have 80% of their wages subsidised by the government, but ministers were criticised for not going so far for the self-employed.Employees kept on by struggling businesses during the coronavirus outbreak will have 80% of their wages subsidised by the government, but ministers were criticised for not going so far for the self-employed.
Now Chancellor Rishi Sunak has announced measures to support them too.Now Chancellor Rishi Sunak has announced measures to support them too.
What help is there?What help is there?
If they have suffered a loss in income, a taxable grant will be paid to the self-employed or partnerships, worth 80% of their profits up to a cap of £2,500 per month.If they have suffered a loss in income, a taxable grant will be paid to the self-employed or partnerships, worth 80% of their profits up to a cap of £2,500 per month.
Initially, this will be available for three months in one lump-sum payment, and will start to be paid from the beginning of June.Initially, this will be available for three months in one lump-sum payment, and will start to be paid from the beginning of June.
It will be called the Coronavirus Self-employment Income Support Scheme, and is open to those who were trading in the last financial year, still trading now, and planning to continue doing so this year.It will be called the Coronavirus Self-employment Income Support Scheme, and is open to those who were trading in the last financial year, still trading now, and planning to continue doing so this year.
Who is eligible?Who is eligible?
More than half of a claimant's income needs to come from self-employment.More than half of a claimant's income needs to come from self-employment.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2017-18. The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.
Those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme.Those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme.
The government's new help comes on top of a six-month delay for tax payments through the self-assessment system.The government's new help comes on top of a six-month delay for tax payments through the self-assessment system.
Those with the lowest incomes are in line to receive more generous benefits payments, announced previously. The chancellor said those applying for universal credit should be paid within a few days.Those with the lowest incomes are in line to receive more generous benefits payments, announced previously. The chancellor said those applying for universal credit should be paid within a few days.
How do I claim the help?How do I claim the help?
The chancellor said this will cover 95% of the self-employed who make most of their money from self-employment. This is how it works:The chancellor said this will cover 95% of the self-employed who make most of their money from self-employment. This is how it works:
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.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.
How many people are affected?How many people are affected?
There are more than five million self-employed people in the UK, earning an average of £781 a month. The number has risen fast since the financial crash of a decade ago.There are more than five million self-employed people in the UK, earning an average of £781 a month. The number has risen fast since the financial crash of a decade ago.
Roughly a fifth are in the construction sector, according to the Office for National Statistics (ONS), with hundreds of thousands of others working in the motor trade, professional services, and education.Roughly a fifth are in the construction sector, according to the Office for National Statistics (ONS), with hundreds of thousands of others working in the motor trade, professional services, and education.
As part of the latest announcement, the chancellor also suggested tax breaks for the self-employed may end in the future. This signals a massive change in UK tax policy, potentially equalising the tax treatment of the self-employed.As part of the latest announcement, the chancellor also suggested tax breaks for the self-employed may end in the future. This signals a massive change in UK tax policy, potentially equalising the tax treatment of the self-employed.
How does the new help compare with salaried workers?How does the new help compare with salaried workers?
Unlike employees, there is no sick pay for the self-employed, although there are tax breaks that come with being self-employed, such as lower national insurance.Unlike employees, there is no sick pay for the self-employed, although there are tax breaks that come with being self-employed, such as lower national insurance.
A plan had already been announced for those who are employed.A plan had already been announced for those who are employed.
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 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).
These will be backdated to March and the scheme will last three months at least. The idea is to prevent mass unemployment.These will be backdated to March and the scheme will last three months at least. The idea is to prevent mass unemployment.