Published on: 26 March 2020 in Industry
New Support Measures For The Self-Employed Announced By The Chancellor
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The Chancellor has tonight unveiled a new support package for self-employed workers affected by the COVID-19 (coronavirus) outbreak.
As you know, support for directors, the majority of whom are self-employed, is exactly what Directors UK has been calling for since this crisis began. While we are pleased that the Government is now taking action in this area, there is still a lot of uncertainty about particular aspects of the measures, and there are significant gaps in what is being proposed. We are working to seek clarification and provide our members with answers as soon as possible.
The Chancellor’s announcement includes the following measures:
A new self-employment support scheme in the form of a taxable grant allowing workers to claim up to 80% of their average profits (calculated over the last three years) up to £2,500 a month.
The scheme will be available for at least three months with an option to renew
The scheme will also apply to furloughed workers
The tax return deadline will also be delayed by a month for the self-employed
The scheme is open to those with profits of less than £50,000 per annum
We would like the thank you, our members, whose support and participation has helped to see these measures introduced by the government. We will be looking at the full measures in more detail and will have updates for members in the very near future.
We are seeking confirmation as to whether this scheme will be equally applicable to those operating via a Ltd or Personal Service Company and those operating as sole traders/self-employed freelancers. We will be scrutinising the proposed start date of June and how the government is expecting self-employed workers to support themselves until that time. And we will also be trying to find out whether there is any possibility of securing a fairer transition or arrangement for those who go over the £50,000 profit limit.
If you have any immediate concerns or questions about these proposals, then please don’t hesitate to contact us at [email protected] and we will do our best to answer them in the coming days.