Coronavirus Self-Employment Income Support Scheme

Key Points: 

• It will cover 80% of your average monthly taxable profits over the past three years. NOT your gross (turnover / sales) income. If you have been self-employed for less than three years, they will use the data they have.

• You MUST have submitted a self-assessment for 2019. If you missed 31 January deadline to file your tax return, an opportunity has been given over the next 4 weeks to get it filed, so you benefit from the scheme.

• HMRC will be contacting those on their database and inviting them to join to the scheme.

• This is capped up to £2,500 per month. Unlike the employed scheme, you are still able to work and benefit from the scheme. However this grant is taxable.

• Majority of your earnings must come from being self-employed. This is determined by having at least half of your taxable income coming from self-employment.

• Your trading profits must be less than £50,000. This ceiling is calculated by either; your profits being less than £50,000 in 2018/19, or on average your trading profits were less £50,000 during 2016-17, 2017-18, and 2018-19 and these profits constitute more than half of your average taxable income in the same period.

• This will be backdated to 1st March 2020 and payments are likely to be made in one lump sum in June 2020.
• Directors of Limited Companies who draw their income in dividends do not qualify. However if they draw a salary through PAYE they can furlough themselves and apply for the 80% of salary job retention scheme.

For information and guidance follow these links:
https://www.businesssupport.gov.uk/self-employment-income-support-scheme/
https://www.businesssupport.gov.uk/self-employment-income-support-scheme-fa…

The MPG welcome this announcement and we’re especially pleased that musicians and sound-engineers were the first group to be acknowledged in the Chancellor’s statement. We know until the money comes through, these next few months are going to be tough for everyone. We will continue to push the Government to do more. We also know that many of our members are directors of limited companies, who currently don’t qualify. We will be liaising with other trade bodies and figuring out the best way to push for further support for this group. We are also continuing to call for a business rates holiday for recording studios. The Chancellor reiterated that self-employed people could apply for the Government’s Business Interruption Loan Scheme and we would like to hear if members are having any issues with this. We will also continue to encourage industry bodies to contribute to some of the existing hardship funds

MPG Loss of Earnings Report

Today we published a report regarding the earnings lost so far during this pandemic, by those working in our sector. Since the outbreak of the Covid-19, engineers and producers have lost a staggering 70% of their income. Whilst some had stopped working all together.  More than half expect to default on their rent or mortgage, while at the same time many are unable to cover the cost of their studio premises. This could potentially see the knees cut beneath the industry, with many good engineers being forced out by selling equipment or giving up their premises to survive, with no return ticket back.

https://www.recordoftheday.com/on-the-move/news-press/recording-engineers-a…

Financial Hardship Funds

For those members who are currently facing particular financial difficulty, a number of funds are becoming available which you may be eligible for.

​​PRS Emergency Relief Fund – Up to £1,000
https://www.prsformusic.com/c/emergency-relief-fund 

Help Musicians Covid-19 Fund – £500
https://www.cognitoforms.com/HelpMusicians1/HelpMusiciansCoronavirusFinancialHardshipFund

MU Coronavirus Hardship Fund – £200
https://www.musiciansunion.org.uk/hardshipfund

Please do let us know if you feel you need support, but don’t meet the criteria. We will do our best to support you and guide you around the system during this stressful and chaotic time. Email the usual place communications@mpg.org.uk