Call our financial advisers to make a self-employed claim for income support
Friday 5 June, 2020
Vishal Gulrajani Financial Adviser in North London, Cheshunt and Goff’s recommend that anyone who is entitled to claim the new self-employed income support scheme calls the Thomas Oliver financial planning team on 01707 872000 so our experienced financial planners can review your financial circumstances.
New extension to Self-employed Income Support Scheme
On Friday May 31st 2020 Chancellor Rishi Sunak announced a surprise extension to the Self-employed Income Support Scheme, as well as more details of the shared responsibility of employers towards the Coronavirus Job Retention Scheme.
Vishal Gulrajani Financial Adviser in North London, Cheshunt and Goff’s Oak said:
‘We have spoken to many of our self-employed clients recently to explain the government’s Self-employed Income Support Scheme. We are pleased that on 31st May the Chancellor extended the scheme. However, it was reported that at the end of May only 2.3 million self-employed had made a claim when 3.5 million emails were sent out from HMRC to self-employed workers who they thought were eligible. It is important to remember that members of partnerships can also each claim. Please note that the Self-employed Income Support Scheme is very different to the employee scheme as the self-employed and partnerships can continue to work in their business and generate income while also claiming under the Scheme. If you haven’t claimed yet but think you may be entitled to make a claim, please contact one of our financial consultants on 01707 872000 for more detailed information about the scheme. We can also share Coronavirus Government Financial Support guidance documents and review your own personal financial situation.’
The key details announced by Chancellor Sunak on 31st May 2020 are as follows:
Self-employed Income Support Scheme
- The Scheme has been extended for a further three months with those eligible able to claim a second and final grant capped at £6,570 (70% of net profits)
- The eligibility criteria is the same for the second grant as for the first grant. Individuals will need to confirm that their business has been adversely affected by coronavirus.
- An individual does not need to have claimed the first grant to receive the second grant. For example, they may only have been adversely affected by coronavirus in this later phase.
- Individuals can continue to apply for the first SEISS grant until 13 July.
- Applications for the second grant will open in August.
- Further guidance on the second grant will be published on Friday 12 June.
Coronavirus Job Retention Scheme
- The Scheme has been extended to the end of October 2020
- Furloughed employees will continue to receive 80% of their current salary, up to £2,500 a month
- From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time.
- From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.
- This means that the current scheme will effectively close to new entrants on 30 June, with the last three-week furloughs before that point commencing on 10 June.
Coronavirus Bounce Back Loans
- Metro Bank has joined the Scheme so there are now 19 lenders of which 3 are in Northern Ireland.
- It is important to remember that the maximum loan under this Scheme is £50,000. So, if a business thinks they might need to borrow more than this amount, they should go for a Coronavirus Business Interruption Loan as you cannot borrow under both Schemes.
Coronavirus Business Interruption Loan Scheme
- There are now over 60 lenders participating in the Scheme.
- The mortgage payment holiday facility has been extended by a further 3 months, and the FCA has proposed a similar extension for individuals with personal credit.
- This mean that individuals with overdrafts, personal loans and credit cards can benefit from an interest free amount or a payment holiday for longer.