Government rescue package for the self-employed

Rishi Sunak, the Chancellor, has just announced details of the rescue package for self-employed individuals.

If you are self-employed you may be able to take advantage of this package which includes the following:

1. A taxable grant worth 80% of the average monthly income, which would be capped at £2,500 per month.
2. Income will be calculated by taking the average of income over the last 3 years.
3. You can claim these grants and continue to do business.
4. The scheme is only open to anyone with trading profits of up to £50,000 and who make the majority of their income from self-employment. So, if you have a second job as a self-employed individual, you will not be eligible.
5. The scheme is only available if you have submitted a tax return for 2019. However, if you have not submitted a tax return by the 31 January 2020 and have not yet submitted it, you can still submit a tax return for 2019 for a further 4 weeks from 26 March 2020.
6. You do not have to take any steps. If you are eligible, HMRC will contact you and pay the grant straight to your bank account after you complete the online form.
7. The self-employed income support scheme will be open for at least 3 months. However, the scheme is unlikely to be accessible before the end of June 2020, so it is unlikely to assist with immediate cash flow problems.