CORONAVIRUS Q&A

Marianna Hunt, the Telegraph’s personal finance reporter, answers your questions on what support is available for the self-employed

Edward Arthur, via website

Q

If National Insurance payments are to increase, will the selfemployed receive extra benefits?

A

The Chancellor hinted when he announced support for the self-employed that they’d have to pay for it with tax increases later. This is likely to mean higher National Insurance payments for the selfemployed. Even if there is a tax increase, it’s unlikely the Government will provide extra benefits, such as sick pay and holidays. Sole traders are a diverse group, so it would be hard to distribute and manage benefits.

Andrew Flynn, via website

Q

I’m a sole trader. What will be used to calculate if I’m eligible for a government grant?

A

HMRC will work out if you’re eligible based on your recent tax returns. To qualify, you must have: filled in a self-assessment tax return for 2018/19; made the majority of your income from your self-employed work; and not be making profits of more than £50,000 a year.

Philip Mitchell, via email Q

The self-employed grant scheme appears to be so unfair. Will there be an appeal system?

A

There are petitions going around asking for extra support, and some people are writing to their MPS.

Shane Bird, via email Q

I’m now unemployed and face defaulting on loan payments. What do I do?

A

Banks are allowing customers a temporary freeze on loan and credit card repayments for up to three months. But interest will still be charged in this time, so you’ll find you’ll have to pay back more in the long-term. You can also take out an overdraft of up to £500, interest-free for three months, so it may be better to do that, and use it to repay your loan.

Layo Akinlude, via email Q

What help is there for those who are self-employed and registered disabled?

A

You can apply for the Severe Disability Premium. This will be replaced by Universal Credit in Jan 2021, but can still be claimed now. Carers paid by PAYE can go on furlough, and the Government will cover up to 80 per cent of salaries. A carer working as self-employed might qualify for a government grant covering up to 80 per cent of profits. Carers are also entitled to Statutory Sick Pay of £94.25 a week from day one of being ill with Covid-19. Carers who lose work because of the virus may also be able to claim Universal Credit and/or Employment Support Allowance.