In the U.K. almost 15% of our workforce are self-employed or freelancers, this is a staggering 5 million of us, many of whom contribute valuable services and support throughout the country.
As a result of the Covid-19 pandemic many self-employed now face a huge challenge in being able to deliver their services, a reduced or total loss of income and without benefits such as sick pay, holiday pay or the Coronavirus Job Retention scheme to fall back on.
Yesterday, March 26 the Government announced the Coronavirus Self-Employment Income Support Scheme (SEISS) enabling certain freelancers to apply for a grant of up to £2,500 per month.
So let’s take a look at what it is and how it will be paid?
It is worth 80% of your monthly profits averaged over the last 3 years
It is capped at £2,500 a month
It is available initially for a period of 3 months
Payable as a lump sum with early indications suggesting June as the earliest possible payment date
What is the criteria to apply?
It is available to freelancers and partnerships where a loss of income has been suffered
You need to have been trading for the past full financial year and have a year of trading accounts
You must still be trading and planning to continue to trade in the future
You must have an average trading profit under £50,000 for 2016 to 2019
More than half of your income needs to come from self-employment
How to Apply
HMRC confirmed you cannot apply yet and they will contact you if you are eligible and invite you to apply online. They will use data on 2018-19 returns already submitted to identify if you are eligible and will risk assess any late returns filed before the 23 April 2020 - so if you’ve not yet filed 2018-19 returns, do so now. However you are not covered by the scheme if you pay yourself a salary or dividends through your own company in which case you may be able to apply for the Coronavirus Job Retention Scheme
If you have any questions or concerns about your financial options as a freelancer please drop us a line or pick up the phone for a chat,
It’s what we do.
Ethos Financial Solutions 01302 244977 www.ethosfs.co.ukPublish date: 27th March 2020