COVID 19: Self Employed Income Support- Key things for Installers to know
Yesterday (26 March) Chancellor Rishi Sunak announced his highly anticipated coronavirus (COVID-19) rescue package for the self-employed. Spencer Clark, Commercial Director at Vaillant outlines the key things those working in the plumbing and heating industry need know.
Last week (20 March) the government announced that it would pay 80% of employees' wages up to a monthly maximum of £2,500. Since then, the country’s five million plus self-employed workers have been waiting to hear if they will receive a similar level of support.
Now the Chancellor has confirmed that self-employed people across the UK will be able to claim a grant equivalent to 80% of their income, based on their average monthly profits – again, up to a maximum of £2,500 a month.
To be eligible for the scheme you must:
• Be self-employed or a member of partnership;
• Have lost trading/partnership trading profits due to COVID-19;
• File a tax return for 2018/19 as self-employed or a member of a trading partnership.
• Have traded in 2019/20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the tax year 2020/21
• Have trading profits of less than £50,000 with more than half of your total income coming from self-employment. This must have been the case for either your 2018/19 tax return or the average of your 2016/17, 2017/18 and 2018/19 tax returns (or both).
You are not for this scheme eligible if you:
• Have average annual trading profits of more than £50,000
• Became self-employed since April 2019 and haven't filed a tax return yet
• Are a company director and pay yourself a salary or dividends
When will I receive the money?
Will I have to pay it back?
What if I have less than three years’ worth of tax returns?
I’m not eligible for this scheme – where can I get help?
I can’t wait until June – what can I do in the meantime?
There is also help available to ease the strain of having to pay certain household costs, such as mortgage and council tax.
The Financial Conduct Authority issued guidance to lenders on allowing homeowners to take a ‘mortgage holiday’ if they anticipate having payment difficulties as a result of COVID-19.
But lenders have warned that interest will still accrue in this time, meaning mortgage repayments are likely to increase. Online Mortgage Advisor have set up a calculator to see how your mortgage payments might change after a payment holiday.
The government also announced in the Budget on 11 March that it would provide local authorities in England with £500 million of new grant funding to deliver support households in their local area, including reduced council tax payments. If you’re concerned about your council tax bill, get in touch with your local authority to see what they can offer.
For more advice and support for businesses on COVID-19, visit www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19