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| Coronavirus: What help will self-employed get from government? | Coronavirus: What help will self-employed get from government? |
| (about 16 hours 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 2018-19. | 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 find it difficult to 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: |
| Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will have 80% of their salary covered by the Coronavirus Job Retention Scheme if operating through PAYE. | Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will have 80% of their salary covered by the Coronavirus Job Retention Scheme if 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. About 3.8 million of them may be covered by this scheme. | 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. About 3.8 million of them may be covered by this scheme. |
| 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, such as lower national insurance may end in the future. These were in place because, for example, the self-employed do not get sick pay or holiday pay, and to encourage entrepreneurship. | As part of the latest announcement, the chancellor also suggested tax breaks for the self-employed, such as lower national insurance may end in the future. These were in place because, for example, the self-employed do not get sick pay or holiday pay, and to encourage entrepreneurship. |
| This signals a massive change in UK tax policy, potentially equalising the tax treatment of the self-employed with employees. | This signals a massive change in UK tax policy, potentially equalising the tax treatment of the self-employed with employees. |
| How does the new help compare with salaried workers? | How does the new help compare with salaried workers? |
| 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. |