Important Update on Coronavirus and Help for the Self Employed
Last updated: 9.19am, Tuesday 5th May 2020
TWO initiatives have been launched to help self employed people cope with the current health crisis.
It is recognised that many of the self employed have been adversely affected by coronavirus.
There are two different schemes available – one from the United Kingdom Government and one from the Scottish Government.
The UK Government scheme – subject to you qualifying – provides a grant which does not need to be repaid but will be taxable and subject to National Insurance. This is known as the Self Employment Income Support Scheme.
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 for the 3 month period. This is a temporary scheme, but it may be extended.
Applications open at 8 am on May 16 and more details are available by following the link below: The money is expected to be paid in June and is backdated covering March April and May. You will not be able to apply if your trading profits are above £50,000 and HMRC will check this out by looking at your 2018-19 tax return before deciding if you can apply.
Remember also that Universal Credit which originally was not available to the self employed now is.
Meanwhile, The Scottish Government has launched its scheme for PEOPLE WHO ARE NEWLY SELF EMPLOYED and do not qualify for the UK Government scheme.
Some Scottish self employed people do not qualify for the UK scheme because the UK Government says it cannot work out the profitability for new businesses such as those launching after April 6 2019. This is because HMRC has not yet been sent a self assessment tax return. Therefore the State does not know much about them.
To address this matter, the Scottish Government has launched what it calls the Newly Self Employed Hardship Fund. It is now open.
It has been established to provide a single grant of £2,000. The fund will be managed by local authorities, and applications opened at the end of April with recipients receiving funds in early May. It also does not need to be repaid.
For the self employed in Glasgow this is the link that takes you to Glasgow City Council’s Newly Self Employed Hardship Fund application page.
Remember that you cannot apply to both schemes.