COVID-19 Support Centre

COVID-19 support for the self-employed

2020 (and into 2021) has given us challenge after challenge. The outbreak of the Coronavirus pandemic that we saw beginning in the early months of 2020 has been the root of some major changes for the self-employed industry.

To keep track of these changes and how they could affect you and your business, we have gathered together the relevant information into a COVID-19 support centre. Here, the self-employed, contractors, and small businesses will find detailed guidance about continuing through a pandemic, put together by our team of industry-leading experts. Covering everything from a near-exhaustive list of self-employment financial support to a detailed break down of the effect of Coronavirus on the off-payroll rules (IR35 reform).

Financial Support Schemes

Coronavirus Job Retention Scheme (CJRS)

Put simply, this scheme offers help towards paying the salaries of any furloughed employees. This is also known as the furlough scheme.

Any businesses that are forced to consider making staff redundancies because of the effects of the Coronavirus pandemic will instead be able to furlough members of staff. Such staff members will receive part of their monthly salary paid for by this scheme.

CJRS will provide up to 80% or £2,500 per month and has recently been extended up until  30th September 2021. The level of support available through the grant will remain the same until 30th June 2021.

Eligibility:

In order to be able to claim CJRS for your employees, you must:

Have already started a payroll scheme either on or before 30th October 2020.Have enrolled for payroll online.Have a UK, Isle of Man, or Channel Island bank account.
Additionally, you may only claim furlough for those employees who were employed and on payroll before 30th October 2020.

To see exactly who is eligible for this scheme in further detail, see the Government guidance here.

Self-employed Income Support Scheme

This scheme comprises of a series of grants made available to self-employed workers with businesses that have experienced the negative impacts of COVID-19. Each grant covers three months.

Eligibility:

• In order to be eligible for this support, you must be either self-employed or a member of a partnership. If you provide your services through a limited company, you will not be able to access this scheme.
• You must also have traded for both tax years 2018/2019 and 2019/2020. For the tax year 2018/2019 you must have submitted a Self-Assessment tax return for that year either on or before 23rd April 2020.
• You must either be currently providing services but facing a reduced demand because of the COVID-19 pandemic, or, were previously providing services but are unable to due to COVID-19. This must, however, be a temporary problem.
  
  

Grant 1: Deadline for claims 13th July 2020

Provides three months’ worth of payment taken from a monthly average over the three previous tax years. There is a limit of £7,500 for this grant.

Grant 2: Deadline for claims 19th October 2020

Provides three months’ worth of payment taken from a monthly average over the three previous tax years. There is a limit of £6,570 for this grant.

Grant 3: Deadline for claims 29th January 2021

Provides three months’ worth of payment taken from a monthly average over the three previous tax years. There is a limit of £7,500 for this grant.

Grant 4: Deadline for claims 1st June 2021

Provides three months’ worth of payment taken from a monthly average over the three previous tax years. There is a limit of £7,500 for this grant.


For more information on exactly how to apply and whether you are eligible for this scheme, take a look at the dedicated page on the .gov website.

Coronavirus Business Interruption Loan Scheme (CBILS)

This loan scheme is designed to help companies with amounts up to £5 million, to be repaid over a period of 6 years. In this scheme, using its accredited lenders, the Government will cover any fees and interests for the first year and will guarantee 80% of the loan.

This scheme will now be in place until the end of March 2021.

Eligibility:

You may apply for a loan from this scheme in the following circumstances:

• If your business is based in the UK and has an annual turnover of up to £45 million.
• If your business were viable if not for the COVID-19 pandemic.
• If your business has also been negatively impacted by the pandemic.

To find out whether you are eligible for this scheme or any further details, see the Government guidance here.

Universal Credit or Contributory Employment and Support Allowance (ESA)

Universal Credit: For any self-employed people unable to claim statutory sick pay during the COVID-19 pandemic, the Government are making it easier to claim for Universal Credit or Contributory Employment and Support Allowance. You are no longer required to go to the jobcentre to receive this support.

ESA: Anyone who is limited as to how much they can work due to a disability or health condition will be able to apply for a new form of ESA. This concerns those unable to claim statutory sick pay or those who are or have a child who is self-isolating or ill due to the Coronavirus.

It provides financial help towards living costs if you are unable to work or support to return to work if you are able to.

Through ESA you may be able to claim up to £74.35 per week if you are unable to work, or, up to £113.55 per week if you are unable to return to work.

Bounce Back Loan Scheme

These are Government-backed loans varying between £2,000 and £50,000 from a list of accredited lenders. They have the added benefit of having no interest charged and do not require repayment within the first 12 months.

This scheme will now be in place until the end of March 2021.

Eligibility:

In order to be eligible to claim a loan from this scheme, your business must fit the following criteria:

• Be based in the UK.
• Established before 1st March 2020.
• Have been ‘adversely’ impacted by Coronavirus.

For a more detailed run-through of the criteria, take a look at the Government webpage here.