Covid-19 Self-employment Income Support Scheme - HMRC Notice After Chancellors Announcment
27th March 2020
The Chancellor, this evening, announced a new Self-employment Income Support Scheme to support self-employed people who have been adversely affected by COVID-19.
Who is eligible
Self-employed people do not need to get in touch with HMRC as the scheme isn't yet open for applications. HMRC will contact eligible customers by the beginning of June, inviting them to apply.
Unfortunately, we are aware of an increase in scam emails, calls and texts. If someone gets in touch claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card or bank details, please do not respond.
HMRC will never contact you out of the blue to ask for these details.
The government has also introduced the following help for the self-employed:
Deferral of Self Assessment Income Tax and VAT payments
Grants for businesses that pay little or no business rates
Increased amounts of Universal Credit
Business Interruption Loan Scheme
Directors of their own company paid through PAYE, may be able to get support using the Job Retention Scheme.
Support for businesses through the Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees' salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers'. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.
The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly.
We will continue to share the most up to date information directly with you as it becomes available.