On the 26th of March 2020, the Government announced that self-employed workers can apply for a grant worth 80% of their average monthly profits to help them cope with the financial impact of Coronavirus.
The amount, up to a maximum of £2,500 a month, will be paid in a single lump sum, and will not begin to arrive until the start of June at the earliest.
At least half their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January – anyone who missed the filing deadline has four weeks from now to get it done and still qualify.
The scheme is open to those who earn bottom line profit of under £50,000 a year. The money, backdated to March, will arrive directly into people’s banks accounts from HMRC, but not until June. The grants will also be taxable, and will need to be declared on tax returns by January 2022.
Company owners who pay themselves a dividend are not covered.
Unlike the Coronavirus Employee Retention Scheme which has been announced, the self-employed can continue to work as they receive financial support.