Chancellor of the Exchequer, Rishi Sunak, has launched a package which secures 80% of average monthly profits for self-employed workers.
Up to £2,500, the financial package will come in the form of a grant.
Described as “one of the most generous packages in the world” by Sunak, the scheme will be available for at least three months, with the government extending this if necessary.
Launched as part of yesterday’s daily press conference, which are now being held virtually, the chancellor said the scheme was open to anyone with trading profits of up to £50,000.
The grant will be available to those who make the majority of their income from self-employment and who filed a tax return for 2019.
The average will be taken from profits over the past three years but is expected to also be available to those self-employed for one or two years as well.
Rishi Sunak further detailed that anyone who missed the filing deadline in January will be allowed four weeks from today to submit their tax return.
The support is planned to help 95% of people who are majority self-employed, with Sunak explaining that those who were not eligible had average earnings of more than £200,000.
The announcement has been widely welcomed by the trade but has received criticism because of the suggestion that the self-employed may have to wait until June to receive the financial help.