Shorter Reads

Coronavirus: Chancellor to announce support for the Self-Employed

The Chancellor of the Exchequer, Rishi Sunak, has already announced a wide-ranging package of measures to mitigate the impact of the Covid-19 pandemic on employees, but government support for self-employed workers has been less forthcoming.

1 minute read

Published 25 March 2020

Authors

Share

Key information

However, the House of Commons Public Bill Committee has now sought to include protection for the self-employed under an amendment to the Coronavirus Bill currently before Parliament (which we expect to be passed swiftly). It proposes that freelancers and self-employed workers should receive guaranteed earnings of:

  • 80% of their monthly net earnings, averaged over the last 3 years; or
  • £2,917 per month,

whichever is the lower.

If accepted, which is expected, this amendment will bring support for self-employed people in line with the support offered by the Covid-19 Job Retention Scheme available to employers.

This may well be subject to tweaks and amendments as it goes through the legislative process and will come as welcome news to the self-employed.

This proposal is in addition to the following measures which were previously announced to support self-employed workers:

  • The next self-assessment income tax payment due on 31 July 2020 will be deferred until 31 January 2021; and
  • The next quarter of VAT payments (20 March 2020 to 30 June 2020) will also be deferred automatically and taxpayers will be given until the end of the 2020/21 tax year to pay any liabilities. VAT refunds and reclaims will continue to be paid by HMRC as normal. HMRC advise that if you normally pay your VAT by direct debit you should cancel this directly with your bank.

If you are self-employed and cannot work because you contract Coronavirus, the proposal is that you will be able to make a claim for the ‘new style’ Employment and Support Allowance (payable from the first of sickness, rather than day eight) or Universal Credit more easily due to changes the government has introduced.

If you are already receiving Universal Credit, then the Minimum Income Floor will be temporarily relaxed to ensure that self-employed Universal Credit claimants will receive support.

We will update our guidance for self-employed workers following a further announcement by the government, expected on 26 March 2020.

Related latest updates
PREV NEXT

Related content

Arrow Back to Insights

Shorter Reads

Coronavirus: Chancellor to announce support for the Self-Employed

The Chancellor of the Exchequer, Rishi Sunak, has already announced a wide-ranging package of measures to mitigate the impact of the Covid-19 pandemic on employees, but government support for self-employed workers has been less forthcoming.

Published 25 March 2020

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

Authors

However, the House of Commons Public Bill Committee has now sought to include protection for the self-employed under an amendment to the Coronavirus Bill currently before Parliament (which we expect to be passed swiftly). It proposes that freelancers and self-employed workers should receive guaranteed earnings of:

  • 80% of their monthly net earnings, averaged over the last 3 years; or
  • £2,917 per month,

whichever is the lower.

If accepted, which is expected, this amendment will bring support for self-employed people in line with the support offered by the Covid-19 Job Retention Scheme available to employers.

This may well be subject to tweaks and amendments as it goes through the legislative process and will come as welcome news to the self-employed.

This proposal is in addition to the following measures which were previously announced to support self-employed workers:

  • The next self-assessment income tax payment due on 31 July 2020 will be deferred until 31 January 2021; and
  • The next quarter of VAT payments (20 March 2020 to 30 June 2020) will also be deferred automatically and taxpayers will be given until the end of the 2020/21 tax year to pay any liabilities. VAT refunds and reclaims will continue to be paid by HMRC as normal. HMRC advise that if you normally pay your VAT by direct debit you should cancel this directly with your bank.

If you are self-employed and cannot work because you contract Coronavirus, the proposal is that you will be able to make a claim for the ‘new style’ Employment and Support Allowance (payable from the first of sickness, rather than day eight) or Universal Credit more easily due to changes the government has introduced.

If you are already receiving Universal Credit, then the Minimum Income Floor will be temporarily relaxed to ensure that self-employed Universal Credit claimants will receive support.

We will update our guidance for self-employed workers following a further announcement by the government, expected on 26 March 2020.

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

Authors

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):

    Article contributor

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up

    Find out about Business

    Find out about Dispute Resolution

    Find out about Individuals & Families

    Find out about Real Estate

    We are Collyer Bristow - The law firm for those that
    value individuality, creativity and collaboration.

    Legal & Pricing info Regulatory InformationAccessibilitySitemapPricing and service information

    Read our latest news: Christmas opening times

    Listen to our latest podcast: State of mind or question of fact? (Part 2)

    Read our latest article: Autumn Statement 2023: key announcements for the employment sector

    Read our latest article: Supreme Court rules against HMRC in family business case

    Read our latest article: Nix Of $11B Award Shows Limits Of Arbitral Process

    ExpandNeed a hand?Toggle

    < Back to menu

    I have an issue and need your help

    Scroll to see our A-Z list of expertise

    Get in touch

    Get in touch using our form below.



      Business Close
      Private Wealth Close
      Hot Topics Close