Lauren Sever, Trainee Corporate and Commercial Solicitor at Davis Blank Furniss

In light of the recent regulations surrounding furlough for employers and employees, the government has also pledged to offer significant financial support to those self-employed in these unprecedented times.

The Self-Employed Income Support Scheme

Similarly to the Coronavirus Job Retention Scheme, this is a temporary scheme which is anticipated to last up to 3 months but could be extended beyond this. As part of this scheme, self-employed workers may be entitled to a direct cash grant of up to 80% of their average monthly trading profits (which is capped at the sum of £2,500).

How it works

The grant will be paid in a single lump sum instalment in June and will cover the period from the beginning of March to the end of May.

The self-employed worker’s average monthly trading profits will be calculated by adding the total trading profits from their tax returns in 2016-17, 2017-18 and 2018-19 and then dividing by three. If a worker has not submitted three years’ worth of tax returns then the formula will be varied according to how many returns they have submitted.

Those affected should apply directly to HMRC using an online form. They will be contacted in due course and advised on how the online form will operate and when it will become operational.

Eligibility

The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19 and to be eligible, more than half of the workers income in these periods must come from self-employment.

The scheme is also open to members of partnerships.

In order to qualify the self employed worker or member must:

  • have submitted their Income Tax Self-Assessment tax return for the tax year 2018-19;
  • have traded in the tax year 2019-20;
  • be trading when they apply, or would be trading except for Covid 19;
  • intend to continue to trade in the tax year 2020-21; and
  • have lost trading/partnership trading profits due to Covid 19.

Who is not covered

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.

Other provisions

Additional provisions have also been introduced by the government to aid with the financial impact of Covid 19. This includes deferral of VAT and Self- Assessment payments. If a worker is due to pay a self-assessment payment on account by 31 July 2020 but the impact of Covid 19 causes them difficulty in making payment by that date, they may defer payment until January 2021.

If you would like to speak to our Employment team, please get in touch on 0161 832 3304.

Testimonials

Read what our clients have to say...

View All

Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.

Ben Armitage

“Very approachable, practical solutions to problems, but most of all very responsive which I personally think is very important because if you need help, you need it quickly, or at least to know someone is looking at it for you”.

Joanne Rowe, Finance Director, Greater Manchester Chamber

“Always able to contact, very approachable, friendly and professional”

Nives Feely, JAM Recruitment

“I believe I have been able to establish a professional working relationship with everyone I have come into contact. Importantly, I sense the relationships which have been established give me the confidence that I can make contact with Davis Blank Furniss at any time and on any matter. I would also like to express my thanks to the very impressive “gatekeepers” who work in reception, not only for making me very welcome, but also for their professionalism”

Bill Pryke, CEO, Chartered Institution of Civil Engineering Surveyors

“Thank you for your efficient and friendly help throughout this process. We have had it easy but your approach has been part of that”.

Robert Amsbury (Conveyancing Client)

“I would like to take this opportunity to thank you personally for the ongoing support and assistance the firm has offered to our parents over the years. I hope also that we may be able to call on you if necessary in the future.”

Valerie Fisher (Probate Client)

“Jo always provides great service, understands our needs and delivers on her promises. Our needs are relatively simple but the complexity arises out of the volume of work and short time frames, Jo always delivers.”

Peter Fernandez, Corporate Director at Royal Bank of Scotland

“A big thank you to all who dealt with my wife’s claim… We would not hesitate to recommend Davis Blank Furniss to anyone that may be in a situation like we have been…”

Anon (Personal Injury client)

“Before putting my case in Kirsty (Morbey)’s capable hands I’ve met a couple of other solicitors. None of them listen to me as intently as Kirsty and showed me as much empathy and understanding as she did. Simultaneously she was able to look at my case from legal perspective, explain all the options and follow each of our meetings with written summary of the discussed matters (in timely manner). Her advice was invaluable and led me to successfully ending the case matter (hopeful for good). I’m forever grateful for he work and would definitely recommend her to anyone looking for reliable, knowledgeable and committed solicitor”.

Anon (Family client)
5 star service

Our Manchester office is rated 5 stars on Google