In what was another day for unprecedented announcements, yesterday the Chancellor presented how the Government intends to provide support to the self-employed. In simple terms, self-employed workers will receive a taxable grant designed to mimic the previously announced support to businesses and employees through the Job Retention Scheme.
The scheme effectively means the self-employed will receive up to 80% of their last three years’ earnings, capped at £2,500. Recognising the complexity of introducing such a system, it was also confirmed that payments are unlikely to come into effect until June. Further details of who will qualify and the process can be found here.
While the support for the self-employed is welcome news, there was a sting in the tale. The Chancellor wouldn’t be drawn on further comment, but has alluded to a levelling of the tax rates for both the self-employed and employed as a result of this equal treatment. This is a strong hint that National Rates in the future will be aligned and is the first indication from all the announcements so far of how the Government may, in the future, look to repay all the debt it will be taking on to fund the support it is providing.
We also received further detail of how the Job Retention Scheme will operate. We will be updating our guidance notes on this to account for the additional information during the course of today.
In other announcements the Government confirmed:
- New legislation to protect tenants and home owners with mortgages to increase the amount of time before any eviction processes could be commenced. Further detail can be found here.
- Clarification on advice for those in the process of moving house or due to exchange. Further detail can be found here.
By Partner, Mark Tibbert