The new Self-employment Income Support Scheme has been unveiled by Rishi Sunak this afternoon.
The scheme provides a taxable grant of 80% of your average monthly profits, taken over the last 3 years, up to £2,500 a month. Available initially for 3 months and then for longer if needed.
He also said that the scheme needed to be both deliverable and fair, offering targeted support to those who need it most. Therefore, the following need to apply
· You must have trading profits of under £50k
· Make the majority of your income through self-employment
· Have submitted a tax return for 2019 – although if you have missed the Jan 31st submission date this year, you now have 4 weeks from today to file.
The scheme will not likely pay out until the beginning of June, in part due to the complexity of calculating the numbers involved, and in part due to waiting on the additional 4 weeks given above.
Government has said that for those with less than 3 year’s trading accounts, they will look at whatever is available, but that they wanted to remove the potential volatility of looking at one year only.
In the meantime, they will have access to the Business Interruption Loan Scheme, income tax payments deferred until January, and access to Universal Credit.