UK government will pay self-employed workers 80% of their profit

Today the Chancellor announced a new financial package for those who are self-employed.

Last week it was announced that employees would have 80% of their wages covered by the government, but people who work for themselves were left in limbo.

Today Rishi Sunak announced that the government would be supporting the self-employed, with a new income support scheme.

Self-employed people will get a grant of 80% of their wages, up to £2,500 per month.

They’ll be able to claim a taxable grant worth 80% of their average taxable monthly profit over the past three years.

Anyone with trading profits of up to £50,000, as well as those who make the majority of their income via self-employment, will be able to claim on the scheme – according to Mr Sunak, 95% of self-employed people will benefit.

The Chancellor said: “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.”

The new financial scheme will be open for at least 3 months, with a possibility it can be extended if necessary.

There’s also a tax return extension, with Mr Sunak saying: “we have decided to allow anyone who missed the filing deadline in January, four weeks from today to submit their tax return”.