Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to establish a hardship fund for self-employed people facing financial hardship during the covid-19 outbreak.

The new Self-Employment Income Support Scheme (SEISS) helps those adversely affected by COVID-19. The scheme allows eligible individuals to claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 in total. Self-employed individuals, including members of partnerships, are eligible if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be less than £50,000, with more than half of their income from self-employment. Some 95 per cent of people who receive the majority of their income from self-employment could benefit from this scheme. The Chancellor will keep the scheme under review.

Individuals may have access to a range of grants and loans depending on their circumstances, and the self-employed can benefit from the Government’s relaxation of the earnings rules (known as the Minimum Income Floor) in Universal Credit. The SEISS supplements the significant support already announced for UK businesses, including the Bounce Back Loan Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.