Self employed income support: key things installers need to know

In his speech, the Chancellor cited June as the earliest payment date due to the complexity of the scheme. But the first payment will be backdated and paid out as a taxable lump sum, covering an initial period of three months. This may be extended if the government decides.

You cannot apply for the scheme yet, but HMRC will contact you if you are eligible for the scheme and invite you to apply online.

No. The lump sum is a grant, so you won’t have monthly instalments to repay, like a loan. However, the chancellor hinted at future tax increases, saying “if you all want to benefit equally from state support you must all pay in equally in the future”.

You should still receive some benefit. During the press conference, the Chancellor said “give us what they've got and we will work through it with HMRC to see if there's a way to support you”. The critical factor is having completed a 2018/19 self-assessment tax return.

If you were due to file a 2018/19 tax return but missed the deadline this year, you have until 26 April to submit it. Be aware that if you only have a few months' self-employment on your 2018/19 tax return, this will be counted as your total profit for the year.

Unfortunately, if you are recently self-employed and not able to file a tax return for earnings in 2018/19 you won’t be eligible for this scheme, but there is other help available.

You can apply for a Business Interruption Loan which is open to self-employed people and offers access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years.

And if you have income tax payments due in July 2020 under the self-assessment system, you can defer them until January 2021.

If you're a director of a company and pay yourself a salary or dividends you won't be able to apply for this scheme, but may covered for your salary by the Coronavirus Job Retention Scheme if you operate PAYE schemes.

Finally, the government has removed the 'minimum income floor' to the Universal Credit benefit and will be boosting the standard allowance from Monday 6 April – meaning a single person aged over 25 could get a standard monthly allowance of £409.89.

As the July self-assessment tax payment can be deferred until January 2021, it may also be worth using money you have set aside for tax to cover immediate expenses until your grant comes through. You could also apply for a Business Interruption Loan or Universal Credit, if eligible.

There is also help available to ease the strain of having to pay certain household costs, such as mortgage and council tax.

The Financial Conduct Authority issued guidance to lenders on allowing homeowners to take a ‘mortgage holiday’ if they anticipate having payment difficulties as a result of COVID-19.

But lenders have warned that interest will still accrue in this time, meaning mortgage repayments are likely to increase. Online Mortgage Advisor have set up a calculator to see how your mortgage payments might change after a payment holiday.

The government also announced in the Budget on 11 March that it would provide local authorities in England with a £500 million COVID-19 hardship fund to deliver support to households in their local area, including reduced council tax payments. If you’re concerned about your council tax bill, get in touch with your local authority to see what they can offer.