Self-Employed

SELF-employed workers can receive up to 80 per cent of their profits lost due to coronavirus-related disruption to their business paid by the government.

Average monthly profits from the last three years of up to £2,500 a month will be used to calculate how much self-employed workers can claim.

The scheme is similar to that promised to workers on the PAYE payroll last week by Mr Sunak.

But it will only be available to available to people who's the majority of their income comes from self-employment and they must have been working for themselves for the past two years in a bid to cut back on fraudulent claims.

 

Anyone who missed the January self-assessment deadline is also being given a four week extension to file their tax return.

Here's what help has been promised to self-employed workers during the coronavirus crisis:

What help has been promised for self-employed workers today?

The government is to pay up to 80 per cent of wages for self-employed workers based on their average monthly profits over the last two years.

This will be up to a limit of £2,500 a month. It’s only available to those with profits of up to £50,000.

How will it work and when will I get paid?

You won’t get paid until the first week in June but payments will be backdated until March 1.

It will only be available to those “adversely affected” by the coronavirus shutdown and half of their income in these periods must come from self-employment.

HMRC will contact directly, ask you to fill in form and pay into your bank account.

Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

What help has previously been promised for self-employed workers?

Increased Universal Credit payments

Universal Credit is the controversial new welfare system, which replaces six benefits - including working tax credit and housing benefit - with one monthly payment.

You may be able to claim Universal Credit if:

  • you’re on a low income or out of work

  • you’re 18 or over (there are some exceptions if you’re 16 to 17)

  • you’re under state pension age (or your partner is)

  • you and your partner have £16,000 or less in savings between you

  • you live in the UK

There's no set amount you can earn, or set number of hours you have to work, as these vary by claimant.

The Universal Credit standard allowance - the amount you're paid each month - currently ranges between £251.77 and £498.89 depending on your age and whether or not you're part of a couple.

You can get extra on top if you have children, a disability or health condition, or you care for someone with a disability.

But on Friday, March 20, Mr Sunak revealed he was upping these limits by up to £1,040 for new and existing claimants from April 6.

This is on top of a planned increase linked to inflation.

The rise is automatic so you don't need to do anything to get it.

In addition, Mr Sunak suspended the self-employed Universal Credit minimum income floor for everyone affected by coronavirus.

He says this will enable more self-employed people to access the benefit at a rate equivalent to statutory sick pay for workers, which is at least £94.25 a week.

TO CLAIM UC CLICK HERE

COVID-19: sales and pricing practices during Coronavirus outbreak

The CMA has been monitoring reports of changes to sales and pricing practices during the coronavirus outbreak.
The Competition and Markets Authority (CMA) wants to ensure that traders do not exploit the current situation to take advantage of people.

It will consider any evidence that companies may have broken competition or consumer protection law, for example by charging excessive prices or making misleading claims about the efficacy of protective equipment. And it will take direct enforcement action in appropriate cases.

In addition, the CMA will assess whether it should advise Government to consider taking direct action to regulate prices.

CMA Chairman Lord Tyrie said:

“We will do whatever we can to act against rip-offs and misleading claims, using any or all of our tools; and where we can’t act, we’ll advise government on further steps they could take, if necessary.”

CMA Chief Executive Andrea Coscelli said:

“We urge retailers to behave responsibly throughout the coronavirus outbreak and not to make misleading claims or charge vastly inflated prices. We also remind members of the public that these obligations may apply to them too if they resell goods, for example on online marketplaces.”

https://www.gov.uk/government/news/covid-19-sales-and-pricing-practices-during-coronavirus-outbreak?fbclid=IwAR1R8s21j0Tj3jYyNqHZD-tilxmz40Xthg2KXm_4fIlMssv8JfpEO0cFlvI