The government has announced a version of the Job Retention Scheme, which will provide a “wage” to those who are self-employed/freelance. We await the details but in headline terms:
- The Self-Employment Income Support Scheme will provide payments to self-employed individuals and freelancers so that their net monthly earnings do not fall below 80% of their average monthly profits.
- A three-year reference period will be used to determine the average monthly profits.
- The amount recoverable under the scheme will be capped at £2,500 per month.
- It is available to those whose trading profits were less than £50,000 last year. More than half of the individual’s income must have come from self-employment and they must have lodged a tax return for 2019.
- Individuals who pay themselves a salary and dividends through their own company are not eligible, but, if they operate a PAYE scheme, they will be eligible for the Job Retention Scheme.
You can read the government’s announcement here.
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