In an announcement that has long been awaited, Rishi Sunak, the UK Chancellor unveiled the next set of measures, designed to help the self-employed workers of the UK. This affects our fenestration industry as many in sales and installation are self-employed. It will be called: Coronavirus Self-employment Income Support Scheme.
These are the key details according to the BBC:
- a taxable grant will be paid to the self-employed or partnerships, worth 80% of their profits up to a cap of £2,500 per month
- this will be available for three months in one lump-sum payment, and will start to be paid from the beginning of June
- more than half of a claimant’s income needs to come from self-employment
- 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
- those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme
There are two points here that will stand out for a lot of people. The cash not being available until June will be far too long for a lot of people, and may still result in job losses and bankruptcies. Second, if you have been self-employed for less than a year, you’re not going to be eligible. There will be calls already for the money to be made available much quicker.
Whilst I agree that the length of time is going to be difficult for many self-employed, we have to consider that the infrastructure to pay people doesn’t exist yet and that takes some time to put together.
This is how to claim:
- HM Revenue and Customs (HMRC) will use existing information to identify those eligible and will invite applications
- the application will require them to confirm that they meet the eligibility requirements
- it will be paid straight into a bank account, which eligible taxpayers will need to confirm on their application form
- people do not need to contact HMRC now, if they are eligible HMRC will contact them directly
Will the self-employed be happy with this? No other scheme exists like this in most parts of the world, so the fact its been announced is a big deal in itself. With no existing infrastructure to start the scheme immediately, it will take some time to build.
Are you self-employed? Does this new scheme help? Will it be enough to make you feel better about being at home? All comments are welcome via the comments section below.
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we’ve encouraged some partners within our glazing group to apply for this grant to help them stay ahead of the situation, thanks for this helpful post. Whats even better, is that its written by a double glazing expert makes it a lot more useful