Britain’s five million self-employed workers have been thrown a lifeline by the Government, however it may come with a sting in the tail in the form of higher taxes in the future. However not all people who work for themselves will be eligible and Mr Sunak warned that everyone wanting to benefit from state support will have to pay in equally in the future. The Government has promised to pay self-employed people negatively impacted by coronavirus up to 80pc of their earnings
Find a local Food Bank (UK)
We know it’s a challenging time for everyone at the moment as the coronavirus pandemic unfolds. Food banks are grassroots, community organisations aimed at supporting people who cannot afford the essentials in life.
If you cannot afford food, please contact your local food bank using the map below.
If you can afford food but are unable to get it due to self-isolating or for another reason, please contact your local council or Citizens Advice.
What support is available?
Those who do qualify for the scheme will receive the same levels of support as PAYE employees who lose work to coronavirus: up to 80pc of their typical earnings. This will be paid as a taxable grant and calculated based on their profits over the past three years. The maximum payment will be £2,500 a month….
With information on the coronavirus (Covid-19) outbreak changing almost hour by hour, it’s hard to figure out what support is available to your small business.
Please see the above list of ways you can get financial help to weather the storm until you get back to business as usual.
Income Tax and VAT deferred for the self-employed
Anyone due to make payment on account in July 2020, won’t need to pay their Self Assessment Income Tax bill until January 2021. However, the government website suggests you should still pay your second payment on account on 31 July if you’re able to.
You get more time if you’re VAT-registered, too. VAT payments due between 20 March and 30 June don’t need to be paid for three months, but you can still pay if you choose to.
Benefits for self-employed workers during the coronavirus pandemic
If you’re not eligible for Statutory Sick Pay because you’re self-employed or earn below the Lower Earnings Limit of £118 a week, the government is making it easier to claim for Universal Credit or Contributory Employment and Support Allowance during the Covid-19 outbreak.
£500 million Hardship Fund
Local authorities will have access to a new £500 million Hardship Fund so they can support economically vulnerable people and households. It’s aimed at providing more Council Tax relief through measures like the existing Local Council Tax Support schemes.
Universal Credit
The Universal Credit Minimum Income Floor will be temporarily relaxed for those who have Covid-19 or are self-isolating in line with government advice. You’ll be able to claim Universal Credit and get advance payments upfront with no requirement to go to a Jobcentre if you’re advised to self-isolate.
According to the Treasury, “self-employed people can now access Universal Credit in full.
“A self-employed person with a non-working partner and two children, living in the social rented sector, can receive welfare support of around £1,800 per month.”
The government website has details on eligibility and how to claim Universal Credit.
Help to pay employees’ salaries
If you have staff you’d otherwise have to lay off due to the coronavirus outbreak, the Coronavirus Job Retention Scheme will pay 80 per cent of an employee’s salary, up to a maximum of £2,500 a month.
This support will be backdated to 1 March and is open for three months, but this may be extended, if needs be.
How do I get this support?
Identify your employees as ‘furloughed workers’, which means staff who have to take unpaid leave.
Tell the affected employees they’re now ‘furloughed workers’.
Tell HMRC which employees are furloughed and how much they earn. The government expects the online system to be ready by the end of April.
If you need cash flow support now, you may be eligible for a Coronavirus Business Interruption Loan, mentioned above.