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27 March 2020These are the new and existing financial measures self-employed people can use if their income is impacted by COVID-19.
27 March 2020On March 26, the Chancellor announced a support package for self-employed workers. This follows a period of suspense whilst the Government was criticised for failing to provide help for this category in his announcements last week for the employed. Rishi Sunak opened the announcement with the words: “You have not been forgotten. We all stand together.” He explained that creating this particular scheme was tough due to the “diverse nature of the self-employed population.”
A grant worth 80% of your average monthly profits, a maximum of £2,500 a month. For a more detailed guide on the Self-Employed Income Support Scheme (SEISS), take a look at our guide
The support will match that announced for furloughed workers on 20th March who are also eligible for a grant worth 80%. Please visit our article on small business finance during the coronavirus outbreak to read more about this as well as other measures available for businesses.
95% of people who are majority self-employed will benefit from this scheme.
To be eligible you must have:
Sunak stated he believed these measures are both “deliverable and fair”. He noted that the 5% of people not covered by the scheme have an average income of £200,000.
The Chancellor announced that the money will be available no later than June 2020. The grant will be backdated, covering the months of March, April and May.
You do not need to apply for this. HMRC will contact those eligible with an online form, then pay the grant as a lump sum straight into your bank account.
You can read more about all the available government support schemes here.
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Charlotte is a Senior PR & Communications specialist at iwoca. She's been sharing news and insights about the finance industry for over three years.
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