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

[Irial]

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]

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]

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

[OceanOrchid]

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]

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

[sunglasses123]

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]

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

[GeorgieTheGorgeousGoat]

‘No later than early June’

So some will get it earlier.

[Orangeblossom78]

"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]

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]

@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]

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]

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]

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]

They did say you could continue to trade

[homemadecommunistrussia]

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]

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]

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

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]

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

Sigh! Story of my life!

[WitchDancer]

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]

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]

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

[SwimForBrighterDays]

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

[StatisticallyChallenged]

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

[WitchDancer]

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

[StatisticallyChallenged]

They also said they're going to ask people if they're still trading which would be similarly open to abuse from those who have stopped