Help for self employed is ‘limited’

Financial experts have cautiously welcomed a £9bn package to support self-employed people from the effects of coronavirus.

Alexandra Withers, North East chair of insolvency and restructuring trade body R3, said he help was welcome but there were potential problems.

She said: “Even without the current coronavirus outbreak, self-employed people and sole traders often have unpredictable income levels, making it harder for many to save for a rainy day.

“The Government’s announcement is a welcome, if limited, step towards evening out the support available for workers across the economy.”

She added: “The limitations do stand out.

“The self-employed will have a sizeable gap to bridge between now and June when the help will actually be available.

“That could be too long to wait for those with no safety net.”

She added: “Anyone who is in financial difficulty or starting to see signs it may be around the corner should seek advice from a professional as soon as possible.

“The earlier you seek advice about your personal finances, the more considered a decision you can make, and the greater range of options you have for improving your situation.”

Chancellor Rishi Sunak said the scheme which will be open for at least three months, will cover 80% of a self-employed person's average monthly profits.

But it may not be available until June and only to those who have a tax return for 2019 - meaning the newly self-employed will be ineligible.