Finance expert's instant reaction to Chancellor's self-employed support package

26 March 2020, 18:26 | Updated: 26 March 2020, 21:12

By Fiona Jones

This is finance editor Claer Barrett's instant reaction to the Chancellor's self-employed support package during the coronavirus pandemic.

The Chancellor wants to "treat the self-employed like the employed" and has introduced the Self-Employed Income Support Scheme.

Under the scheme the self-employed will receive a taxable grant of up to 80 per cent of their average monthly profits over the last three years up to £2,500 per month.

He said it will cover those with trading profits up to £50,000 and will cover people who earn the majority of their income from self-employment.

Finance editor Claer Barrett said the biggest problem that will emerge from tonight's package announcement is how self-employed people will structure their finances to wait until June for this payment to arrive.

Claer Barrett said that Rishi Sunak's claim this will cover 95% of the self-employed seems inaccurate.

People who won't be helped by this scheme are those who structure their arrangements so they trade via a limited company or a personal services company, according to Ms Barrett.