Government reveals support for self-employed

Chancellor Rishi Sunak has outlined the much-anticipated support to be given to the self-employed, including homeworkers.

They will receive 80% of their average monthly profit, up to a maximum of £2,500 a month. Payments will be based on their last three years’ tax returns and they will last for three months, putting the self-employed on the same footing as employees.

Sunak said the scheme would cover 95% of the estimated five million self-employed people. He said the remaining 5% not covered by the scheme earn an average of £200,000 a year.

“We think that what we have done is reasonable, proportionate and fair,” said Sunak.

The support for the self-employed will be up and running by the beginning of June, possibly earlier, said Sunak, with payments back-dated to March. Self-employed people don’t need to contact HMRC, they will be sent forms to fill in to show their current trading and earnings, he said, and lump sum payments will be made directly to their bank accounts.

MMP