Question to the HM Treasury:

To ask Her Majesty's Government what is the justification for the cap on trading profits in order to access the Self-Employment Income Support Scheme to be set at £50,000 when there is no cap on earnings in the eligibility criteria for the Coronavirus Job Retention Scheme.

The Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS) are different schemes. The CJRS is designed to prevent businesses laying off staff. The SEISS is designed to support the living standards of the self-employed.

The SEISS, including the £50,000 threshold, is designed to target those who need it most and who are most reliant on their self-employment income. The self-employed are a very diverse population. They have a wide mix of turnover and profits, with monthly and annual variations even in normal times. The self-employed can also offset losses against profits in other years and other forms of income. Some may see their profits unaffected by the current situation, while others will have substantial alternative forms of income. For example, those who had more than £50,000 from self-employment profits in 2017-18 had an average total income of more than £200,000.

In addition, the self-employed can continue to work and remain eligible for the taxable grant as long as they meet the other criteria, including their trade being adversely affected as a result of COVID-19.

Those with average profits above £50,000 may still benefit from other support. Individuals may have access to a range of grants and loans depending on their circumstances. The SEISS supplements the significant support already announced for UK businesses, including the Bounce Back Loan Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available on GOV.UK.