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Self-employed workers able to apply for a grant of up to £2,500 a month

(109 Posts)
Irial Thu 26-Mar-20 17:27:58

www.bbc.co.uk/news/uk-52053914

Self-employed workers will be able to apply for a grant of up to £2,500 a month to help them cope with the financial impact of coronavirus, the chancellor has announced.

The money will be paid in a single lump sum, but will not begin to arrive until the start of June at the earliest.

Rishi Sunak told the self-employed: "You have not been forgotten."

Plans for 80% wage subsidies for staff kept on by employers were announced last week.

Itsnotthatcomplicated Thu 26-Mar-20 17:31:38

This will be quite interesting.

I know a lot of self employed people who only declare a small wage, so the dont pay tax or pay minimal tax. Including exh.

Accountants often recommend it. This will heavily impact what they can claim.

Will the figure include dividends?

PepePig Thu 26-Mar-20 17:33:50

You'll still get half of Mumsnet gurning about it. I hope all the pricks underdeclaring get their karma, though.

OceanOrchid Thu 26-Mar-20 17:34:55

I think it's fair - it is precisely the same as what employed people get. It is worrying that's it's such a long wait, but they've also said they can hold off on tax payments so that should help.

Yiayoula Thu 26-Mar-20 17:36:03

So that’s at least 9 WEEKS then ......
Hmmmm.
Seems like they are forgotten to me!

sunglasses123 Thu 26-Mar-20 17:37:45

It took time to announce because its complex. Of course if you have under declared revenue for years. Tough shit! You reap what you sow

Backyard72 Thu 26-Mar-20 17:37:54

Does this only apply to British passport holders does anyone know?

GeorgieTheGorgeousGoat Thu 26-Mar-20 17:39:20

‘No later than early June’

So some will get it earlier.

Orangeblossom78 Thu 26-Mar-20 17:40:08

"Self-employed people will be able to apply for a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.
Mr Sunak said the grants would be available to people across the UK for at least three months, and longer if necessary"

ihatethecold Thu 26-Mar-20 17:40:51

what happens in the mean time? My son is a dry liner and is self employed. His site has shut this week so no wages from next week.

BamboozledandBefuddled Thu 26-Mar-20 17:41:11

@Backyard72 I would have thought it would apply to anyone who's registered with HMRC as self-employed. Haven't actually heard that though.

NotEverythingIsBlackandwhite Thu 26-Mar-20 17:44:31

Self-employed people will be able to apply for a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.

Based on average profits, not average wages.

StatisticallyChallenged Thu 26-Mar-20 17:44:58

Wasn't clear if they will take in to account most recent year trading - the 2019 returns were mentioned for eligibility but we're almost at the end of trading year and will be ready to submit next return on 7th april. It would make a big difference, not due to anything dodgy but due to a growing business. Loss 3 years ago, profit 2 years ago, doubled 1 year ago, doubled again this year.

MrsWolf2 Thu 26-Mar-20 17:46:40

Is it for people who are still making some money but nowhere near as much, or just for people who have lost their income entirely?

StatisticallyChallenged Thu 26-Mar-20 17:48:32

They did say you could continue to trade

homemadecommunistrussia Thu 26-Mar-20 17:48:38

My parents are both self employed and are chuffed to bits, the delay won't be too much of a problem as they are used to people being crap payers and have contingency money.

EightNineTen Thu 26-Mar-20 17:55:45

I hope it includes 2020 as I only started in March 2019 so had precious little to declare that year! I'm ready to file asap as I've no income now. Maybe those that file in 2020 are those who'll have to wait till June, which seems fair enough.

WitchDancer Thu 26-Mar-20 17:58:12

ItsNotComplicated - I think you are referring to Limited Company directors, not self employed people. Self employed don't get wages, just drawings that have no influence on the amount of tax paid.

They have stuffed new start ups - if you are in your first year of trading you won't get anything sad

Interesting that it will be taxable, although I'm guessing the furloughed worker money will also be subject to the usual tax & NI deductions too.

I agree that the details should be released faster so you can work out if you will get it.

EightNineTen Thu 26-Mar-20 17:59:38

Just checked the website, no it's just up to 2018/19.

Sigh! Story of my life!

WitchDancer Thu 26-Mar-20 18:00:43

EightNineTen - unfortunately you're stuffed. They won't take current years into account as there are some that would falsify figures to get a bigger amount of money.

sunglasses123 Thu 26-Mar-20 18:00:46

I really dont think it will include 2020.

Those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme.

Buutercupdawn Thu 26-Mar-20 18:01:42

Does it include this year or tax year 2018/19?

SwimForBrighterDays Thu 26-Mar-20 18:02:07

It can't possibly include 2020. Too many opportunities for fraud.

StatisticallyChallenged Thu 26-Mar-20 18:07:21

Because of the timing, last 3 years is really not what they are covering in that case.

WitchDancer Thu 26-Mar-20 18:08:04

ButtercupDawn - it will be based on the average of 2018-19, 2017-18, 2016-17

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