A reported 9 million people are potentially being ‘furloughed’. But what help is there for self-employed people?
A few weeks ago, the Government announced the Self-employment Income Support Scheme (SEISS). This is a new scheme that gives grants (you have to apply) for self-employed people to help you if you’ve lost income due to the pandemic.
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended like the furlough scheme.
You can apply if you’re a self-employed individual or a member of a partnership. To establish you’re, well, established, you must:
And when it comes to cash:
This is worked out by either:
This is the tricky bit. We’re expecting the application scheme to be out at the end of April. There’s nothing in place until then.
The Government has said you will be contacted directly if eligible.
You can only access the scheme through the Gov.uk website and it will be run by HMRC. The links will appear closer to that time along with the conditions for applying.
The cash will be paid in June in one chunk.
Lots, but it’s important to face down your finances in the first instance.
The Government has announced a new mortgage holiday scheme. Details here from the British Business Bank:
Here’s the FCA’s guidance on how the banks should be running the scheme: https://www.fca.org.uk/consumers/mortgages-coronavirus-consumers
The regulator has also made it clear that:
What businesses aren’t covered?
This is complicated. If in doubt, get in touch – but apply regardless.
What about Limited Companies and their directors?
This one caught lots of self-employed people by surprise. No scheme was announced for people with LLP’s but we understand from the MSE team that limited company directors, even if they’re the only employee, can furlough themselves.
This is only the PAYE part of your income (your wages, not dividends). This matters because these payments will be much lower as the bulk of your cash will be in dividend payments. You also won’t be able to work for the company.
What about the business loans?
You may have heard a lot of news about the Government’s business loan scheme – the Coronavirus Business Interruption Loan Scheme (CBILS).
We’ll cover this in a more detailed guide, but in short:
What about my upcoming tax bills?
There’s a plan for that too.
The same goes for your self-assessment payment due in July. The money must be paid before 31 March 2021 though.