Retention Scheme

Contractors unable to work may be able to secure relief courtesy of the Job Retention Scheme or a proposed equivalent measure for the self-employed.

Contractors unable to work as a result of the coronavirus epidemic may be able to access relief courtesy of the Job Retention Scheme (JRS) or an equivalent measure currently being discussed within the House of Commons, depending on their trading model.

Government measures introduced to support businesses and employees while preventing redundancies were met with criticism last week when it became apparent that similar provisions had not been made for the self-employed.

However, a notion for 'statutory self-employment pay' has been tabled within the emergency Coronavirus Bill, requiring that Government 'top up' the earnings of self-employed workers at the same rate afforded to employees.

The Coronavirus Bill 2019-21 - in the committee stage in the House of Commons at the time of writing – sets out plans for the provision of statutory self-employment pay. The Bill proposes that payments made constitute whichever is lowest out of:

• 80% of the individual's monthly net earnings (averaged over the last three years)
• £2,917

Though further details regarding the proposal for statutory self-employment pay are yet to emerge, it is believed this relief would only be available to those who are not undertaking any other work during the period in question.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

Original Source - Contractor Calculator