COVID-19 Self Employed and Freelance
To all my creative Freelance friends here is some breaking news my accountant Gary Foster has sent me about possible ways to claim similar financial support in these uncertain times which is similar to the paye employees are able to:
I thought I would drop you all a quick update based on something I have just seen online, as it sounds like the good news we have been waiting for is coming shortly, possibly tomorrow.
I have just seen a copy of a proposed ‘Parliament Public Bill Amendment’ (see copy attached) which describes the planned benefits for both self-employed and freelancers. This bill has yet to be approved and passed but we are expecting it to pass through without any problems and be announced in the next day or two.
It states that the self-employed or freelancers will receive the lower of £2,917 per month or 80% of their monthly net earnings, averaged over the last 3 years. It doesn’t state yet for how many months but my guess is that it will mirror the 3 months previously announced for employed workers on Friday, with the possibility to extend further if needed.
Although this states self-employed, an extract from the HMRC website regarding ‘self-employment and Universal Credit’ describes the following:
Everyone claiming Universal Credit needs to report their self-employed earnings at the end of each monthly assessment period. This includes company directors, even those paying themselves by PAYE.
Based on this definition, we therefore expect company directors to be included under the category of self-employed, and therefore able to claim the 80% of the 3 year average of salaries and dividends declared on their tax returns, restricted to a maximum of £2,917.
Obviously the above has to be passed by parliament then explained to us in more detail, but I feel confident it is the announcement most of us have been waiting for.
I appreciate many of you will now be frantically asking me to check your 3 year average amount, but please hold off for now and wait for this to be confirmed by the government.