Chancellor, Rishi Sunak unveils self-employed economic relief stimulus package
27th March 2020
The government is offering the same support as furloughed payrolled workers, by pledging to pay the self employed with annual profits under £50,000, 80 percent of their monthly profits in a package expected to cost £9bn. Only applicants who have lost money during the pandemic crisis will be eligible and workers are being asked to claim only for the amount they have a shortfall of.
Sunak said the scheme would enable workers to “claim a taxable grant worth 80 per cent of their monthly profits of the last three years, up to £2,500 a month”.
The three-month scheme was welcomed by businesses, although the package will not be available until June. The Chancellor also intimated that the self employed may have to pay more National Insurance as the Treasury reflects on how to pay for the package.
Sunak stated the package would be available for 95 per cent of people who are self-employed and called it “one of the most generous in the world”.
Trades Union Congress (TUC) general secretary Frances O’Grady stated after the announcement “millions of self-employed workers will sleep easier”.
The news follows the announcement this week of the postponement of companies’ VAT payments until June, in business relief worth over £30bn.
HMRC is due to contact the self employed via email as soon as possible with further guidance.
If you would like to discuss your options, please contact us on email@example.com or call 01926 422 292.
You can also visit our coronavirus support article for futher information upon the wider range of business support avaliable.