The Chancellor has been clear on strengthening the safety-net for the self-employed and has announced a range of measures from which they will benefit. The next Income Tax Self-Assessment payments, due in July, will be deferred for that month. Self-employed individuals in temporary financial distress as a result of Covid-19 and who are unable to pay their tax on time or have existing liabilities are also eligible for Time to Pay. HMRC have set up a dedicated helpline to enable those eligible to get practical help and advice which can be reached by calling 0800 0159 559.

Freelancers and the self-employed may also benefit through the welfare system, including the £1,000 per annum increase in the Universal Credit standard allowance, the equivalent increase in the basic rate of Working Tax Credit and the uprating of Local Housing Allowance.

We are also temporarily relaxing the Minimum Income Floor for all self-employed Universal Credit claimants for the duration of the outbreak. This means a drop in earnings due to sickness or self-isolation or as a result of the economic impact of the outbreak will be reflected in claimants’ awards. Universal Credit can be claimed online or via phone, meaning self-employed claimants will not be required to attend the jobcentre for this.

Additionally, self-employed people unable to work because they are directly affected by Covid-19 or self-isolating will also be eligible for Contributory Employment and Support Allowance. As announced at Budget, this is now payable from the first day of sickness, rather than the eighth.