Statutory self-employment pay update

The Chancellor has tonight announced the self employed scheme.

Self-employed workers will be able to apply for a grant of 80% of their net monthly earnings up to £2,500 a month to help them cope with the financial impact of coronavirus.

The grants would be available to people across the UK for at least three months, and longer if necessary. It will be backdated to March. It will arrive directly it people’s bank accounts from HMRC as a lump sum for all thee months, but not until June. The grants will be taxable, and will need to be declared on tax returns for 2020/21 by the tax filing deadline of January 2022.

In all, 95% of people who earn most of their income as self-employed would be covered, the chancellor added. It is targeted at up to 3.8 million of the 5 million people registered as self-employed, who earn under £50,000.

At least half their income needs to have come from self-employment as registered on the 2019-20 tax return filed in January, or averaged over the three previous years. Company owners who pay themselves a dividend are not covered.

This page was last updated on 26 March 2020. please see our follow up post – http://nicholsonandco.co.uk/self-employment-pay-scheme/