Stuart WoodConcerns have been raised over Chancellor Rishi Sunak’s financial aid package for the self-employed, announced 26 March.
Sunak announced that those who are self-employed can apply for a grant worth 80% of their average monthly profits, up to a maximum of £2,500 a month.
This average will be worked out based on the last three years of accounts, although three years of accounts are not required to be eligible. A minimum of one year’s worth is accounts is required.
While support for the self-employed has been welcomed, those who are classified as sole directors of their own limited companies have been left in limbo. These people cannot claim the 80% either as an employee or as self-employed, and may have to apply for Universal Credit.
It is also unclear whether or not they can furlough themselves, in order to receive the 80% wage grant which was announced by the chancellor last week.
If you are self-employed or work on a freelance basis and have questions, we urge you to visit The Association of Independent Professionals and the Self-Employed (IPSE).
Derek Cribb, CEO of IPSE, commented: “We urge the government to get this vital support to freelancers as soon as practically possible.
“This is an unprecedented package and a very welcome response to our campaign for freelancers and the self-employed. While this assistance is practical and wide-ranging it does not, however, cover all self-employed people. We will keep working to fill in these gaps.
“With our mission to support and promote the work of independent professionals and the self-employed, we will keep striving to stop those in need from being left behind.”
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