NABMA consultants have been reviewing the package of further government assistance in respect of the self employed announced yesterday. The link is
The NABMA viewpoint is concern for the lack of support to be given to the recent new influx of traders to markets, particularly young traders, as a result of the excellent work of NMTF and local initiatives of NABMA members.
The following is a brief resume of this package prepared by a NABMA consultant.
- The government will provide a grant of 80% of the average monthly PROFITS, taken over the last 3 years. This will be up to a maximum of £2,500 a month. This will initially apply over a 3 month period, but this will be subject to a possible extension.
- The Chancellor expects access to the scheme to be no later than the beginning of June. The grant will then be backdated to March.
- It will be possible to claim the grant whilst continuing to work.
- The grant will be limited to those with INCOMES below £50,000. (N.B. The distinction that is made between Profit in terms of the calculation of the grant and Income in terms of eligibility).
- The grant will be limited to those where the majority of their income comes from self employment.
- To qualify for the grant claimants must have already been in self employment. For this reason, only those who have lodged a 2019 tax return can apply. However, the Chancellor has extended the deadline for lodging tax returns that were due in January by 4 weeks from 26.3.2020.
- The Chancellor is mindful that there will be a delay before grants can be received. With this in mind he made the point that:
- Access is available to the business interruption loan scheme.
- It will be possible to defer income tax payments that would have been due in July 2020 to January 2021.
The welfare system has been adapted to the extent that the self employed will now be able to access Universal Credit in full.