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

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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.

[sunglasses123]

The Business Interruption Loan is fraught with issues. I know its early days but it looks like they want you to guarantee payment using property, personal assets etc so we are waiting for further guidance from our accountant.

[StatisticallyChallenged]

Had missed that. Nightmare - growing business so no piss taking here.

[HoldMyLobster]

So all those non-resident parents who declare the minimum in earnings so that they pay the minimum in Child Support will only get 80% of what they declared?

Please tell me this is going to be the case.

[Thescrewinthetuna]

The one time being honest and declaring everything hasn’t shafted me. I’m so relieved (subcontractor CIS scheme). June feels miles away though

[RedCorvette]

I’m one of the ones ‘left behind’ by this.

About £55K average salary. Single parent, in London. Better off than many of course but not rolling in it. Sole trader, have paid tax in full as such for 10 years. No dodges or anything of the sort.

If I was employed on that salary, I would be receiving £2,500 a month. As it stands, I will receive nothing.

I do have some savings, and should be able to do some work through this. But it’s by far from a perfect scheme.

[forkfun]

Like anything else, this could be abused @Thesispieces, but there are many families reliant on the income of a freelancer. Do you suggest not giving them anything because some idiots will abuse it? I'm a freelancer. My business so far hasn't been affected and probably won't be or only very slightly. I don't plan on claiming. But if my kids were toddlers there's no way I could continue working very much. Or if I was a single parent. I'm glad this is there to help many people who have huge financial worries right now.

[thetoddleratemyhomework]

Red Corvette - do you pay yourself a pension that can be deducted (if the scheme allows it when they publish the details) or is the £55k including that? I'm sorry, it is a tricky cut off isn't it?

[DogInATent]

As it's based only on profits, it also stuffs anyone with high fixed costs - van rent, shop rent, etc.

[thetoddleratemyhomework]

And I guess that the chancellor is really just trying to ensure that people survive it without it being so expensive for the state that we will have to have another wave of huge state austerity. Luckily you will survive. But it must be very disappointing for others like you who are just above the threshold in a very expensive part of the country.

[Neednewwellies]

Anyone know about casual workers working on different company books for short periods so not self employed

[Orangeblossom78]

As it's based only on profits, it also stuffs anyone with high fixed costs - van rent, shop rent, etc

Yes. We've an industrial unit which takes up the costs, I guess will still have to pay for that though. So won't help us.

[rainbowwelly]

I've been mostly self employed for the last five years with 1.5 years as an employee and some self employed income during that time. I lost my job at the end of February and declared myself as going back to self-assessment/fully self employed on 1st April 2020. This was confirmed by letter first week of March. I filed a tax return for 2018/2019, but my self-employment was just under 50% of my income (literally a few quid).

Do you think I'll be eligible? I'm a travel writer and copywriter so I'm screwed atm.

[rainbowwelly]

My self employment for 2018/2019. Previous years were pure self employment income.

[KoalasandRabbit]

If you earned more than 50% of income from self-employment in 3 years to 18-19 you should be eligible, issue might be if you had no self-employed income in 19-20, aren't doing a tax return for that year. Still a few days left to do some work.

[babysnowman]

It seems unfair...DH's income comes about 45% from being freelance and the rest from being employed albeit on a zero hour contract. So he won't qualify for this grant as the majority of his work isn't self-employed, and on the other hand his employed hours have drastically dropped so we're not sure where he'll stand there. Majority of income could be 51% or could be 100%, seems unfair to treat someone at 45% so differently.

Anyone know how it might work or are we stuffed?

[rainbowwelly]

@koala I've earned just shy of £1k for 19/20 (so under the usual threshold of self assessment) but need to claim back loads of additional costs and travel from my old job so I'll be filling in an assessment.

[KoalasandRabbit]

It's over 50% in either 2018-19 alone or average of previous three year, if you are under you are stuffed. If you are eligible for UC you can claim that, otherwise it's nothing for self-employed part.

Hopefully you'll still be eligible Rainbow, don't think it defines how they count being self-employed in 2019-20 but would have thought you'ld still be OK unless they add a rule about it must be over £1k. But not seen anything to that effect atm and don't think they are looking at 2019-20 at all other than to say you did some self-employed work that year.

[EightNineTen]

Ah well. TBH at the start I wasn't expecting anything at all, so UC is a bonus really. I was thinking I'd have to use all my savings to survive.

[rainbowwelly]

Yeah of the average of the last 3 years is weighted more towards self-employed (I think?) depends on the 3 year period I guess. Up to 2019 yes, including 2020, no.

[KoalasandRabbit]

It doesn't include 19-20 for the weighting.

[Cattenberg]

Does this mean my childminder won’t get anything then? She’s been open for just under a year. I really hope she does get her 80%.

One of my self-employed friends used to moan that she couldn’t get a mortgage because “obviously, I don’t declare all of my income”. She’s stuffed herself, hasn’t she? Although in her case, my sympathy is limited.

[rainbowwelly]

Fab. Even if you include the 19/20 weighting self-employment is £6k higher. Without it's £14k. So fingers crossed. It would certainly make a big difference in this household. I'm a travel journalist and copywriter.

[RedDiamond]

@Neednewwellies - Anyone know about casual workers working on different company books for short periods so not self employed

You might have come unstuck. If you are not on an employers books at the moment, then you are not classed as an employee so won't be furloughed.

If you have not filed a self assessment in the last 3 years, then there is nothing there for HMRC to work out what, if anything, you could be paid.

What do you do for money inbetween these casual jobs?

[KoalasandRabbit]

If childminder wasn't self-employed before she'll get nothing unless entitled to UC.

[KoalasandRabbit]

Details are here, it doesn't count 2019-20 income.

www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals