Струмен Паунов: Новини за корона-гранта за самонаети в Англия(видео)
Your rights if you’re self-employed
You can’t get statutory sick pay if you’re self-employed. But if you have to take time off work because you’re sick or self-isolating – or if you’ve lost all your income due to coronavirus – you might be entitled to claim benefits. Plus further help has been announced in the form of the new Self-employment Income Support Scheme (SEISS).
Under this scheme, self-employed workers will be able to apply for taxable grants to combat loss of income due to the coronavirus pandemic. Here’s how it’ll work and some eligibility criteria…
- The grants are worth up to 80% of your profits. This is capped at £2,500 a month and is taxable. As it’s a grant, it means you don’t have to pay it back.
- Grants are decided on your profits over the last three years.
- Alert. You must have filed a tax return for 2018/19 – you’ve got until 23 April to do so. This means you must have been self-employed prior to 6 April 2019. If you were due to file a 2018/19 tax return but missed the deadline this year, you’ll have until Thursday 23 April to submit your tax return and then you can still access the scheme. However, if you only have a few months’ self-employment on your 2018/19 return, this will be counted as your total profit for the year – the Government won’t pro-rata it based on your monthly profits.
- You must earn more than 50% of your total income from self-employment. This must have been the case for either your 2018/19 tax return or, if not, the average of your 2016/17, 2017/18 and 2018/19 tax returns.
- Your average trading profit must be less than £50,000/year. This is essentially a ‘cliff-edge’ requirement – so those whose average annual trading profit is £50,000 or more won’t be able to get any support from this scheme.For both these requirements, the Government says it will first check your 2018/19 tax return – if you met the requirements that year, you’ll be eligible.
However, if you earned more than £50,000 (or earned less than half of your income from self-employment) in 2018/19, the Government will then check your 2016/17 and 2017/18 tax returns, if you filed them for those years. If on average over the three years you earned less than £50,000 and made more than half your income from self-employment, you’ll still be eligible.
- This scheme’s expected to start paying out in June. Payments will likely be backdated to cover March, April and May (in the form of a lump sum). The scheme will operate across the UK and is set to last for at least three months, though this could be extended.
- Unlike the employee scheme, here you CAN keep working. You also do not need to prove coronavirus impact – all who qualify get it.
- You CAN apply for both the scheme and universal credit. The best approach is to apply for universal credit now, and if you start receiving self-employed income support in June too then this will be classed as income, meaning the amount of universal credit you receive will decrease.
Martin’s video will help explain all this…