Coronavirus UK: Who counts as a self-employed worker?

Rishi Sunak unveiled the government's plans to support the self-employed today.

Chancellor Rishi Sunak has now outlined the government’s plans to support the self-employed through the ongoing coronavirus pandemic.

The much-anticipated support package will mean that self-employed workers can access a taxable grant worth 80% of their average profits over the last three years, up to £2,500 a month.

The grants, which will launch in June, will be available for those earning up to £50,000 a year, covering 95% of those who make their income through self- employment.

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Who counts as a self-employed worker?

According to the government’s website, you count as self-employed if you:

• run your business for yourself and take responsibility for its success or failure
• have several customers at the same time
• can decide how, where and when you do your work
• can hire other people at your own expense to help you or to do the work for you
• provide the main items of equipment to do your work
• are responsible for finishing any unsatisfactory work in your own time
• charge an agreed fixed price for your work
• sell goods or services to make a profit

Many builders and construction workers are self-employed, finding themselves currently out of work – or working in precarious circumstances.

While it sounds like an obvious question, it can be difficult to know if you count as self-employed as many businesses try to evade Pay As You Earn (PAYE) so they treat staff as self-employed instead of employees.

If in doubt, you can check your employment status on the government’s website.

If you are self-employed, you must register as such with HMRC.

If you are recently self-employed, you may not be eligible to apply for the government’s grant scheme and may have to look to welfare support instead.

How to apply for the government’s self-employed grant

You cannot yet apply for the scheme, although if you are eligible, HMRC will proactively contact you ‘at the beginning of June.’

Mr Sunak said: ‘HMRC are working urgently, we expect people to access it no later than the beginning of June. If eligible, HMRC will contact you with an online form, they pay the grant straight to your bank account.’

To minimise fraud, the scheme is only those already in self-employment, who have a tax return for 2019.

The government has extended the tax return deadline, so anyone who missed the January deadline can now submit their tax return in the next four weeks.

Until then, people losing out on wages must rely on the income support already available, such as Universal Credit.

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