Coronavirus Assistance Available Including Universal Credits

Self-Employed

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by Coronavirus.  We published details about SEISS in a recent blog: –

https://jsca.co.uk/government-announces-support-for-the-self-employed/

The SEISS payments are expected to start to come through in June.

Employed

The Coronavirus Job Retention Scheme (CJRS) has been designed to try to reduce the number of employees being laid off or made redundant due to the current pandemic. The details of CJRS can be found in the following blog: –

https://jsca.co.uk/coronavirus-job-retention-scheme-update/

The CJRS payments should start coming through to employers at the end of this month.

What if I do not qualify for support under either of these schemes or cannot afford to wait for SEISS?

Unfortunately, there are some self-employed people and also employees who do not qualify for either scheme.  For example: –

• Someone who has become self-employed for the first time in the last tax year
• Someone who has changed jobs and was not on their current employer’s payroll at the cut off date of 28 February 2020.
• Someone who has incorporated their business in the last tax year

In addition, some self-employed people may currently be experiencing hardship whilst they wait for the SEISS payments to come through.

Directors of limited companies have found that the support under CJRS does not take account of their dividends and therefore their income has, in many cases, been significantly reduced.

These people may qualify for Universal Credit. There are various conditions that must be met though, which include age and the level of the claimant’s and their partner’s savings. There is more detailed information about Universal Credit on the government website:-

https://www.gov.uk/universal-credit/eligibility

https://www.gov.uk/universal-credit/what-youll-get

https://www.gov.uk/universal-credit/how-to-claim

The following link may be helpful If you would like to try to work out whether it would be worthwhile making a claim: –

https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=367e71c2-1c76-4b96-aeef-10b31aa44d21

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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