The UK government has introduced new measures to help freelancers and the self-employed during the coronavirus (COVID-19) outbreak.

The coronavirus pandemic has led to businesses closing and entire countries enforcing lockdown. During this uncertain time, the UK government has introduced measures to support freelancers and the self-employed and address concerns around finances, tax and sick pay.

Photo by Hello I'm Nik and Blog by Lauren Stevens

You may be wondering, "How will I keep my finances afloat? With no sick pay, what will I do if I'm unwell? With no redundancy pay, how can I support myself and my family if I can't find work?" 

You're not alone in your concerns: there are five million self-employed people in the UK, accounting for 15% of the workforce, who are in the same boat.

In response, the UK government has introduced a set of measures to support freelancers and the self-employed during the pandemic. If you become unwell or are struggling to find work, these measures aim to ensure your financial stability.

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You can access the COVID-19 Self-employment Income Support Scheme if you are self-employed or a member of a partnership and have lost income as a result of the coronavirus. Provided that your income is under £50,000 and, more than half your income comes from self-employment.

If you qualify under the scheme, you can receive a taxable grant of 80% of your profits up to a maximum of £2,500 per month for the next three months.

You don't need to apply for this scheme; HMRC will invite you to submit an online application if you are eligible.

The minimum income floor is the government's estimate of how much money a self-employed person is earning. Previously this may have prevented freelancers and the self-employed access to Universal Credit. However, the minimum income floor has been suspended for the duration of the outbreak. Freelancers and the self-employed can now access Universal Credit at a rate equivalent to Statutory Sick Pay for employees (approximately £94.25 per week). Advance payments are available and, there is no need to attend a Jobcentre due to all interviews and formalities being conducted via the phone or online.

To check your eligibility and apply, visit the government's Universal Credit website.

The New Style Employment and Support Allowance is accessible if you have a health condition or disability inhibiting your ability to work. This includes if you are directly affected by COVID-19 - either if you are ill yourself or are self-isolating and cannot work due to government advice.

Previously this could only be accessed from the eighth day of illness; under the new rules this is now accessible from the first day.

Applications are made via the Universal Credit website, it is worth checking eligibility on the New Style Employment and Support Allowance webpage first.

The self-assessment payment on account usually is due to be paid to HMRC by 31 July 2020. The self-assessment has now been deferred until January 2021, with no interest or late payment charges, to help if you are struggling as a result of the crisis.

The offer is automatic, no application is required. Deferment is optional; if you can pay on 31 July 2020, you can do so.

Time to Pay arrangements offer a time-limited deferral period on HMRC liabilities and are there if you are struggling to make tax payments due to COVID-19. What and when you pay is decided on a case-by-case basis, you will need to get in touch with HMRC to discuss your circumstances.

The COVID-19 helpline has been set up to support businesses and the self-employed with queries or concerns you may have.

Depending on your circumstances, HMRC may be able to agree a bespoke Time to Pay arrangement and waive late payment penalties and interest relating to taxes.

The Coronavirus Business Interruption Loan Scheme aims to support small UK businesses in allowing access to bank loans, overdrafts, invoice finance and asset finance for up to 6 years. Plus, the government will cover the first 12 months of interest repayments and any lender-levied fees.

All major banks are offering this scheme. To apply, talk to your bank or one of the 40 accredited finance providers.

The IR35 reforms aim to tackle tax avoidance where self-employed contractors set up limited companies to pay themselves through dividends, which are not subject to National Insurance. These reforms were due to be implemented in April 2020. However, considering the economic fallout of the COVID-19 crisis, the government decided to push back these reforms until April 2021 to give contractors more time to prepare financially.

Hopefully, the resources provided throughout this article will help you find the support you need in these uncertain times. If you don't know where to start, consider using an online benefits calculator, such as Turn2Us, to see what you could be eligible for.

And if you're looking for work, you can view opportunities on our website by signing up here.