In this time of global pandemics, people being furloughed from their jobs and no one actually admitting they know a decent path out of this chaos, folk are struggling financially. I want to discuss the self employment income support scheme which has been launched.
People Are Falling Through Gaps
About 15% of the country are self employed. That number grows year on year as people like setting up their own ventures and enjoy the freedom of working for themselves. As much as that dream is idealistic, there are many who have fallen through the support gap. Some people haven’t been self employed for long enough to apparently ‘justify’ the support. There are also limited company directors who aren’t getting any support.
People out there who pay taxes and have done for many years aren’t able to get support. From all walks of life and all sorts of industries too. Whilst it’s great for those it covers, it’s nothing but a kick in the teeth for those it doesn’t. This needed looking at but the government have had plenty of time to do so. They’re now starting to look at the end of this scheme, not bringing more people into it. I feel for those who aren’t getting support.
Eligible For Support
Fortunately, I am eligible for support via the Self Employment Income Support Scheme. As is my wife. I am the main earner in our family as my wife looks after the kids 90% of the time. She takes on bits and pieces of freelancer work where she can for certain clients too. Having both checked we were eligible on the government website, we both got the dates that we could apply. The government has staggered this so everyone doesn’t flood the site at the same time when it opens. My wife’s date was today and mine is tomorrow. We applied for her money today.
What’s The Process?
It was actually really simple to apply. Considering a lot of the government websites are tricky to tackle, I expected it to be much worse. You need your UTR number, your National Insurance number and then access to the government gateaway. If you’ve been submitting self assessment tax returns you should have this anyway. After a few clicks you are shown the amount you will get for the three months of the Self Employment Income Support Scheme.
It’s worked out off your last three tax returns (or two if you don’t have three). It’s then averaged out, divided by 12 to give you a monthly figure. Then it’s multiplied by three. Finally you get 80% of that figure, in line with the amount for furlough. You have to type in your bank details and it’s done before you know it. The money should be with you in 5/6 days. It’s a shame my wife’s wasn’t figured out over two years instead of three as three years ago she was pregnant and on maternity leave, which isn’t included. Anyhow, we’re just glad to have a little bit of support. We don’t earn a lot anyway and have lost work because of Coronavirus so are thankful for the Self Employment Income Support Scheme.
What Next?
Whilst the furlough scheme has been extended until the end of July without any changes before changes likely come into play to take us to the end of October, there has been no mention of an extension for the Self Employment Income Support Scheme. I expect there will be. It seems bad enough to have a scheme which covers employed people and one which was announced well after that for self employed where some people fall through the next, without the furlough one being extended and the self employed one not being. It would cause even more divide in a nation which is struggling. We can but hope! There are many money lessons to be learned from this global pandemic, for both the general public and the government. I hope you are staying safe and looking out for one another.
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