CORONAVIRUS: Chancellor outlines measures for self-employed + reaction

Chancellor Rishi Sunak acknowledged there had been a lot of worry among many people, from plumbers and child-minders to hairdressers.

"We will not leave you behind. We will stand together."

However, he said he could not guarantee that all the measures outlined would protect every job and save every business.

 "I’m proud of what we’ve done so far, but I know that many self-employed people are deeply anxious about the support available for them.

"So to support those who work for themselves, today I am announcing a new Self-Employed Income Support Scheme.

"If your business is dealing with the impacts of coronavirus, you can now apply for a three- month extension to file your accounts with Companies House, allowing you to prioritise more pressing issues and avoid a late penalty.

"The government will pay self-employed people, who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last three years, up to £2,500 per month. Open for at least three months across the UK, I will extend if necessary.

"You’ll be able to claim these grants and continue to do business.

"We’re covering the same amount of income as we are for furloughed employees, who also get a grant worth 80%. That’s unlike almost any other country, making our scheme one of the most generous in the world.

"I’ve taken steps to make the scheme deliverable, and fair.

"It’s only open to those with trading profits up to £50,000, who make a majority of their income from self-employment. To minimise fraud only those already in self-employment, who have a tax return for 2019 can apply.

"95% of people who are majority self-employed will benefit from this scheme.

"HMRC are working urgently, we expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.

"To make sure no one who needs it misses out on support, we have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.

"I know self-employed people are struggling right now, we’ve made sure: - You can access the business interruption loans.

- Income tax payments due in July can be deferred to the end of Jan 2021.

- We’ve changed the welfare system so you can access Universal Credit in full.

"The scheme I have announced today is fair. It is targeted at those who need it the most and crucially, it is deliverable.

"It provides an unprecedented level of support for self-employed people."

The Chancellor said their rescue package followed talks with trade unions and bodies such as the Federation for Small Businesses.

He also said: "If we all want to benefit equally from state support, we must all pay in equally in future. The last 10 days have shaken this economy as never before."

Welcoming the measures to support the self-employed and sole traders whose businesses have been affected by Coronavirus, British Chamber of Commerce director general Dr Adam Marshall said:  “The Chancellor’s announcement offers a lifeline to the vast majority of the UK’s five million self-employed people, many of whom have seen their livelihoods vanish overnight.  

“Chambers, along with other business groups, have worked constructively with government to ensure the self-employed receive similar support to those who are employed through PAYE. 

“We welcome the scale of this scheme and recognise the complexities involved in its design. It is now critical that the government delivers this practical support to people on the ground as soon as possible.”  

York self-employed commercial photographer Allan Scott said the grant for businesses with trading profits up to £50,000 captured genuine self-employed people, and was welcome.

He was also pleased he would still be able to work, where possible.

"That gives me a bit of confidence. Ninety per cent of my work over the next two months has dropped off because a lot of it was face to face.

"My concern was that whatever they announced could prevent me from working alongside that, to earn small amounts and keep in touch with clients.

"I don't want to down tools. I have built up a business over ten years, then this comes along. We have to ride the storm."

Cllr Andrew Waller, executive member for the economy, said: “It is constructive that York’s 12,000 self-employed have now (mostly) been added to the schemes announced by Government, after much lobbying.

"This will help many in the city by June, but there will be some who will miss out through not having been in operation for three years, and the wait until June for the payments will cause problems for many. There will be a lot of work to do with partners to get support where it is needed.”  

Alex Jowett, director of Vision Technicians, in Scarborough, said: "I think Rishi Sunak has outlined a great package for the self employed. 

"Matching the funding to the 80 per cent made available to the employed seems like the obvious option.

"There are doubtless people who will be concerned about the delay until payment in June. However, the government appear to have done a great job for the whole country. I'm really impressed at what the government are doing for EVERYBODY.

"It's an unprecedented situation and they have put together an unprecedented response."

Welcoming the measures, British Chamber of Commerce director general Dr Adam Marshall said:  “The Chancellor’s announcement offers a lifeline to the vast majority of the UK’s  five million self-employed people, many of whom have seen their livelihoods vanish overnight. 

 “Chambers, along with other business groups, have worked constructively with government to ensure the self-employed receive similar support to those who are employed through PAYE. 

“We welcome the scale of this scheme and recognise the complexities involved in its design. It is now critical that the government delivers this practical support to people on the ground as soon as possible.”