Self-employed workers start getting government grant cash of up to £7,500 paid into bank accounts
SELF-employed workers have started to receive Government grants worth up to £7,500 to help them get through the coronavirus crisis.
The emergency cash is to help those who work for themselves and who've lost income as a result of the COVID-19 outbreak.
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Applications for the Self-Employment Income Support Scheme (SEISS) opened last week.
HMRC then promised that payments would be directly into their bank account by May 25, or within six working days of completing the claim.
Similar to the furlough scheme for PAYE employees, SEISS sees the Government cover up to 80 per cent of self-employed workers' average profits, up to £2,500 a month, if their income has dropped due to the pandemic.
It can be backdated to cover March, April and May meaning you could claim up to £7,500.
Self-employment grant: who can claim?
YOU can claim if you're a self-employed individual or a member of a partnership and you:
- have submitted your self assessment tax return for the tax year 2018/19
- traded in the tax year 2019/20
- are trading when you apply, or would be except for coronavirus
- intend to continue to trade in the current tax year (2020/21)
- have lost trading profits due to coronavirus.
Grateful employees who've already received the money have taken to Twitter to praise the department for the quick turn around.
Andy Tewkes applied for the grant on Friday and received the cash yesterday.
He wrote: "Excellent service and have lot of praise for chancellor and HMRC for such excellent implementation and service."
Another self-employed worker wrote: "Pleased to confirm my grant from HMRC for being a self-employed translator took just 4 days to arrive after I applied on Friday morning.
"Thank you so much for all the advice and support during this difficult period!"
Elize thanked the Chancellor Rishi Sunak for the "smooth and straightforward application and payment" of the SEISS grant.
But she added: "We're sincerely hoping it'll also be possible to extend this for the no-doubt troublesome time ahead."
Unlike the furlough scheme, SEISS only covers three months worth of missing pay until June.
In contrast, the Coronavirus Jobs Retention Scheme (CJRS) has been extended to run until the end of September.
The scheme will continue in the current format until the end of July when employers will be expected to chip in.
What help is available?
THE government has introduced the following measures to help self-employed workers and businesses during the coronavirus outbreak.
- Income-tax deferrals: Self-assessment income tax payments, that were due in July, can be deferred to the end of January next year.
- Rent support: Businesses who are struggling to pay their rents are protected from eviction until the end of June.
- Coronavirus business interruption loan scheme: SMEs can get loans and overdrafts of up to £5 million for up to six years and the government with guarantee up to 80 per of these loans.
- Grants of up to £10,000: Small firms can get grants of up to £10,000 to help with ongoing business costs.
- VAT payments: VAT payments can be deferred for three months.
- Tax bill help: SMEs that cannot afford their tax bills can ask HMRC for a “time to pay” arrangement so any debt collection is suspended.
- Business rates holiday: A 12-month business rates holiday has been introduced for many businesses.
But the Chancellor has issued no new hope for self-employed workers that an extension is on the way.
In an interview with the BBC, Mr Sunak was asked if he would extend the grants, and replied: "We're looking at the best thing to do but... the reason for that is slightly different in that many of those self-employed people are not in sectors, which are necessarily closed or have an employer who has reduced their hours.
"It is a slightly different scheme, which I was clear about at the beginning."
Only those who have been contacted by HMRC are entitled to apply for the bailout.
If you haven't received your payment yet, don't panic because HMRC says that it aims to pay everyone before May 25.
Those who applied later than the first day it opened for claims should wait at least six days for the money to arrive in their accounts before contacting HMRC.
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Alternatively, you can contact HMRC for free via the , or over the phone on 0800 024 1222.
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