In the latest step to protect individuals and businesses, the Chancellor, Rishi Sunak has announced a scheme to support people who are self-employed in the UK.

Under the new Self-Employed Income Support Scheme, individuals who are eligible receive a cash grant worth 80% of their average monthly trading profit over the last three years. The grant will be up to a maximum of £2,500 per month.

This covers 95% of people who receive the majority of their income from self-employment. It aims to bring parity with the Coronavirus Job Retention Scheme, which supports wages.

Who is eligible?

To qualify, more than half of an individual’s income in these periods must come from self-employment. Individuals can continue to do business.

The scheme will be 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.

Grants will be paid in a single lump sum instalment covering all 3 months, and will start to be paid at the beginning of June. The scheme may also be extended if necessary.

What to do next?

At this stage, do don’t need to do anything. The HMRC is finalising the measures and will invite applications once the scheme is operational.