Second helping of aid for the UK’s self-employed

SELF-EMPLOYED people whose income has been hit by coronavirus can apply for a second support grant from the UK government.

The first was launched in May, with some 2.7m people claiming £7.8bn. Up to three million people may be eligible for the new payment, but Chancellor Rishi Sunak has indicated that this will be the final bit of assistance.

As many as 15,000 first-round payments were miscalculated in favour of the claimants, according to HM Revenues & Customs, but the tax authority says it will not be seeking restitution. The errors were discovered by a legal services firm.

Under the first payment, self-employed workers were able to claim 80 percent of average profits, up to £2,500 a month for three months, paid in one instalment.

Those who earn more than half their income from self-employment are eligible to claim 70 percent of profits in the second Self-Employment Income Support Scheme. There is a cap of £2,190 a month (for a total of £6,570).

They must have had a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.

Applicants must confirm that their business was affected by pandemic on or after July 14.