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Self employed support outlined in today’s Budget

The furlough scheme will now run until the end of September and self-employed income support will be extended to 600,000 who were previously excluded, the Chancellor has confirmed in today’s Budget.

Employees on furlough will continue to get 80% of their salary for hours not worked, up to £2,500/mth. That will remain the case until the scheme ends.

The Government’s also announced a major extension to the Self-Employment Income Support Scheme (SEISS) – and crucially, for the first time since the scheme launched, its scope will now be widened to include some of those who weren’t previously eligible.

The fourth SEISS grant will be worth 80% of trading profits for three months, capped at £7,500. The value of the grants has varied since they were launched, but the next grant, which is supposed to cover February, March and April, will be worth 80%.

Applications for the fourth SEISS grant will open in April.

Photograph: Nick Ansell/PA

There are more than five million self-employed people in the UK, earning an average of £781 a month. The number has risen fast since the 2008 financial crash.

Now the Government has said it’ll widen its eligibility criteria. While previously you must have filed a tax return for 2018/19 to apply, it now says those who’ve filed a 2019/20 return may also be eligible – a move it says means over 600,000 more people may be able to apply. The Government says all other eligibility criteria will remain the same as the third grant.

The fifth grant covers May to the end of September, but the amount available depends on loss of income.

Workers whose turnover has fallen by at least 30% can still apply for a grant for up to 80% of profits, up to a value of £7,500 in total.

Those whose income has fallen by less than that can apply for up to 30% of trading profits capped at £2,850.

Claims can be made from next month for the fourth grant. Claims for the fifth grant will open in July.

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