As the effects of the Coronavirus continue to damage many of our lives, we thought it a good time to look in detail on how one sector of our population will be helped by recent government announcements. Here we take a look at the government’s help for the self-employed.
Help For The Self-Employed – The Criteria
When the Chancellor set out his plans for self-employed people, of which there are 5 million in the UK, he explained what the criteria was for those that would receive government funds, in the form of a grant. The criteria is fairly straight-forward. Those that are self-employed will receive money back-dated to 1st March. The money will initially cover at least 3 months – March, April and May. It will be 80% of average previous earnings, as calculated by looking at your last 3 tax returns. It will itself be taxed. You need to have put in a tax return for the 18/19 tax year to qualify. Also, earnings need to be under £50,000, and self-employed earnings must make at least 50% of your earnings. The grant, which does not need to be repaid, will also be subject to NI contributions. you still need to be self-employed to trade too.
How Do I Know If I Will Get Money?
The system set up by the government is structured in a way that means you have to do nothing. There is no means-testing nor any application forms to fill out – not yet at least. You will receive an email from HMRC, probably around mid-May, to inform you that you are eligible for the grant. If you receive the grant, the government estimate you will receive money some time around early June.
The Calculations – What You Will Get
Using the criteria above, you should be able to calculate what you should get by accessing your self-assessment returns on the government site. If you have not been self-employed for three years, an average will be taken from your one or two returns instead. The maximum you will get is £2500 per month.
Help For The Self-Employed – When Will The Money Arrive?
There is no set date, as it is a huge undertaking for the government to do this, along with all the other initiatives. But they have always stated that applicants can expect money from around the middle of June.
