26 C
Saturday, October 3, 2020
Home Business £3bn self employment grant claims

£3bn self employment grant claims

Claims for the government self employment grant have reached £3bn since the scheme opened on 13 May.

More than one million people have applied for the self employed income support scheme, which is designed to support self employed and freelance workers in a similar way to the furlough scheme for employees.

The grants are calculated as 80% of average monthly profit over a period of up to three years.

But income is only calculated from the 2018-19 tax year backwards, meaning thousands of newly self-employed people are not eligible. Those that registered as self employed from April 2019 onwards or only started earning more than 50% of their income from self employed work in the 2019-20 tax year will receive nothing.

People who pay themselves with dividends from a limited company are also not able to apply for the financial support.

The COVID-19 grant package is being processed by HMRC, which has been operating and overseeing loan schemes and the government’s furlough payments.

Eligible applicants will receive a single instalment covering three months, up to a maximum of £7,500 ($9077.78). The government said the funds should land in bank accounts within six working days of each claim.

The scheme was announced in March after the government faced fierce public criticism for failing to support the large self employed workforce. It has been rolled out several weeks ahead of schedule.

There is no news yet on whether the self employed initiative will be extended into the autumn in line with the furlough scheme, which protects 80% of employees’ wages up to £2,500 a month.

Chancellor, Rishi Sunak, said: “With payments arriving before the end of this month, self-employed across the UK will have money in their pockets to help them through these challenging times.”

Leave a Reply

- Advertisment -

Most Popular

[Movie] Welcome to Sudden Death (2020)

Sequel to the 1995 Jean-Claude Van Damme action flick. Jesse Freeman (Michael Jai White, Black Dynamite) is a former special forces officer and explosives expert...

Nigeria’s New 2020/21 Nike Jerseys

Building upon the learnings from the successful 2018 Nigeria Collection, Nike undertook deep cultural immersions and collaborated with each federation to ensure the designs...

Instagram now allows users to connect Instagram DMs with Messenger

Instagram has rolled out a new feature that allows users to connect Instagram DMs with Messenger. This feature will allow a user to send...

Should polygamy be practiced? – Oluwafeyisayo Apata

Yes polygamy can be practice and the same way the answer is No, polygamy should not be practice. What is polygamy? This can be...
%d bloggers like this: