Are you self-employed? Here’s What The Government Is Doing For You

It feels like an age has passed since the Chancellor unveiled his first scheme to assist those who were self-employed and struggling to deal with the economic shock of Covid-19. Since the 27 March, there have been a number of amendments made to various government support schemes to ensure that as many self-employed individuals as possible don’t fall through the net.

If you are self-employed and wondering what support is available or if the criteria has changed, we have listed the current schemes on offer, who is eligible and where to apply.

Scheme	What is it?	Eligibility	How to apply
Self-Employment Income Support Scheme	A scheme designed to assist those whose income has been adversely affected by Covid-19. The scheme will issue a grant to self-employed people or partnerships, worth 80% of their profits up to a cap of £2,500 per month.	In order to be eligible, an individual must meet all of the following criteria: Be self-employed; Lost trading profits as a result of coronavirus; File a tax return for the year 2018-2019 as self-employed, or as a member of a trading partnership – those who have not yet filed for 2018-2019 will be granted an additional four weeks (from 27 March 2020, we understand) to do so; Have traded in 2019-2020; be trading currently at the point of application (or would be were it not for the Coronavirus) and plan on continuing to trade in the tax year 2020-2021; Have trading profits of under £50,000 and more than half of your income come from self-employment.	The scheme does not open for applications until May. More details, including how you can apply can be found on the government’s website
Universal Credit	Taking into account the impact of coronavirus, the government has removed the minimum income threshold for Universal Credit. It will be available to those affected by the virus and claimants will not be required to attend a job centre. Payments for Universal Credit will be raised so that a self-employed individual can receive the same amount as someone on statutory sick pay.	To be eligible to claim Universal Credit, you cannot have savings above £160,000. If you do, the government states that you must wait until you have exceeded your savings buffer before you can qualify.	For more details on how to apply, visit this dedicated page on the government’s website.
Employment and Support Allowance (ESA)	The government has revamped its Employment and Support Allowance Scheme to expand it to those feeling the adverse impacts of Covid-19. Payments will be made from the first day of sickness rather than the usual eighth day.	In order to be eligible, you will need to have paid enough National Insurance contributions in the last two or three years. If it is your first time applying for ESA, you need to send a completed ESA 1 form, along with an NHS 111 fit note as proof that you are not fit for work. You will receive the first payment within three weeks.	For more details about how to apply, visit the government’s website
HMRC ‘Time to Pay’	Through the Time To Pay Scheme, businesses may be eligible to receive financial support if they are concerned about paying taxes as a result of coronavirus. HMRC has announced it will waive penalties related to late payments in cases where a business has administrative problems in contacting HMRC or paying taxes.	This scheme is administered on a case by case basis. You should contact the government’s dedicated helpline to check eligibility.	HMRC has launched a helpline. The number is 0800 024 1222. For more information on the scheme, visit the government’s website.
Coronavirus Bounce Back Loan Scheme	The Government has announced a 100% government-backed loan scheme for small businesses, which sees firms being able to apply to borrow between £2,000 and £50,000 and to access the cash within days. These loans will be interest-free for the first 12 months and no repayments will be due in the first 12 months.	The Government has said the application process will be easy and through a short, standardised form. Applications are now open and loans will be available through a network of accredited lenders.	For more details, including on how to apply, visit the government’s website
IR35	A delay to proposed IR35 tax reforms - measures aimed at clamping down on tax avoidance by targeting contractors who provide the same services as employees (but which has affected freelancers more widely) - will now be delayed by one year, to April 2021.	This will apply to all businesses.	For more details on the delays to IR35, read this article.
The Future Fund	A new £500 million loan scheme for high-growth firms. The package also includes £750 million in targeted support for SMEs focusing on research and development.	The convertible loans may be an appropriate option for firms that rely on equity investment and are not eligible to access the CBILS. The scheme will launch in May 2020 and will be administered in partnership with the British Business Bank.	For more information, including on how to apply, visit the dedicated section of the government’s website.