Chancellor announces 'generous' self-employment support scheme

Chancellor Rishi Sunak has announced a 'generous and comprehensive' support scheme to help '95 per cent' of those who are self-employed during the COVID-19 crisis.

Following on from announcements about the 'coronavirus job retention scheme' last week, Sunak said the government would cover 80 per cent of the monthly wages earned by self-employed people.

But the first grants under the scheme are not expected to be made available until June. Sunak added that those who were self-employed and facing financial hardship could get 'almost immediate' universal credit.

The Chancellor said the 'operationally complex' scheme would only be open to those who were trading in the last financial year, still trading now, and who are planning to continue doing so this year. 

The scheme is open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. But those who are recently self-employed and do not have a full year of accounts will not receive any help under the scheme.

The amounts to be paid by the government would be calculated based on average monthly profits over the last three financial years. The payments would be capped at £2,500 per month and are initially expected to last three months.

The proposals are part of an 'unprecedented' economic package launched by the government to help businesses. 

Article source: Architects' Journal