Job Retention Scheme and the Self-Employed
The Job Retention Scheme has obviously been welcomed by employers and employees, but where does it leave the self-employed? A Liberal Democrat amendment to the Coronavirus Bill was put before Parliament this week, proposing a system whereby the self-employed would be paid 80% of their average monthly net earnings, capped at £2,917 a month.
However, it seems unlikely that this measure will be supported by government. The Chancellor, Rishi Sunak, has indicated that there will be some delay in announcing any support for the self-employed, stating that this area was “incredibly complicated”.
As already announced, the self-employed will be able to defer until 31 January 2021 their second payment on account for 2019/20, due on 31 July. This measure covers sole traders and partnerships, rather than people running their own business through a limited company.
Other support measures are available and set out in our blog: Advice for individuals and the Self-employed