CHANCELLOR Rishi Sunak has announced a support package for self-employed people. 

The Chancellor said the support package for self-employed people would cover 80% of average earnings over the past three years.

He told a press conference: “To support those who work for themselves, today I am announcing a new self-employed income support scheme.

“The Government will pay self-employed people who have been adversely affected by the coronavirus a taxable grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.”

Posting on Twitter, the chancellor Rishi Sunak wrote: “1/ I’m proud of what we’ve done so far, but I know that many self-employed people are deeply anxious about the support available for them.

“So to support those who work for themselves, today I am announcing a new Self-Employed Income Support Scheme.

“2/ The government will pay self-employed people, who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last 3 years, up to £2,500 per month.

“Open for at least 3 months across the UK, I will extend if necessary.

“3/ You’ll be able to claim these grants and continue to do business.

“We’re covering the same amount of income as we are for furloughed employees, who also get a grant worth 80%. That’s unlike almost any other country, making our scheme one of the most generous in the world.

“4/ I’ve taken steps to make the scheme deliverable, and fair.

“It’s only open to those with trading profits up to £50,000, who make a majority of their income from self-employment. To minimise fraud only those already in self-employment, who have a tax return for 2019 can apply.

“5/ 95% of people who are majority self-employed will benefit from this scheme.

“HMRC are working urgently, we expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.

“6/ To make sure no one who needs it misses out on support, we have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return.

“7/ I know self-employed people are struggling right now, we’ve made sure:

– You can access the business interruption loans.
– Income tax payments due in July can be deferred to the end of Jan 2021.
– We’ve changed the welfare system so you can access Universal Credit in full.

“8/ The scheme I have announced today is fair. It is targeted at those who need it the most and crucially, it is deliverable.

“It provides an unprecedented level of support for self-employed people.”

But the Chancellor is facing backlash already, has the grants will not be available until June. 

He said arrangements have been made for self employed people to get an advanced payment from Universal Credit while they are waiting for the support to kick-in. 

Mr Sunak said the scheme will be available “no later” than the beginning of June.

He said that it is open to anyone with trading profits of up to £50,000 and will be only available to those who make the majority of their income from self-employment so only the “genuinely self-employed” benefit.

“To minimise fraud, only those who are already in self-employment who have a tax return for 2019 will be able to apply,” he said.

“95% of people who are majority self-employed will benefit from this scheme.

“HMRC are working on this urgently and expect people to be able to access this scheme no later from the beginning of June.”

Mr Sunak said those eligible will be contacted by HMRC and the money will be paid into their bank accounts.

And he said anyone who missed January’s filing deadline will have four weeks to submit their tax return so no-one misses out on support.