Article updated: 3 February 2021
Covid-19 has been a difficult time for those who are self-employed. Many have seen huge losses to their income or have been forced to close their business altogether.
If you are currently self-employed in one of the eight countries we work with here at Bark, here is the latest information on support available to you at the time of writing.
Australia
Australia is running the JobKeeper payment for business owners to be able to continue to pay their employees. The self-employed can also claim if they have seen their income negatively affected due to the pandemic.
The JobKeeper Payment will be available until 28 March 2021. Payments range between $650 and $1,200 per fortnight before tax.
The Australian government have devised a tier system for the JobKeeper payment which is as follows:
Tier 1:
Eligible employees who have worked 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020.
Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
Tier 2:
Any other eligible employees and eligible business participants.
Canada
Those who are self-employed in Canada can benefit from EI Benefits, though you need to have been registered for at least 12 months to qualify. As of September 27, 2020, changes were made to the EI Benefits scheme to make it more accessible in light of the pandemic.
Payments start at $300 per week before taxes for extended parental benefits, though the figure starts at $500 for everyone else. If you don’t qualify for EI benefits, then there are other benefit schemes you may be eligible to claim from.
Ireland
The COVID-19 Pandemic Unemployment Payment is a welfare payment that covers both employees and the self-employed in Ireland.
PUP payments range from €200 to €350 depending on your usual rate of earnings. To qualify, your trading income needs to have ceased or at least reduced due to the pandemic. You must not receive any income from an employer and must also be seeking work. Only those who are aged between 18 and 66 can apply.
New PUP applications will be accepted until 31st March 2021.
New Zealand
The New Zealand government will make one-off payments to small businesses (including the self-employed and sole traders), as part of the Small Business Cash Flow Loan Scheme.
The amount of the loan is up to $10,000 and includes an additional $1,800 per equivalent full-time employee. Applications have been extended until 31st December 2023.
Singapore
Singapore has introduced a Covid-19 Recovery Grant to provide temporary financial relief to workers in low or middle-income households who have experienced involuntary job loss, income loss or no-pay leave as a result of Covid-19.
Applications for the Covid-19 Recovery Grant will close on December 31st 2021.
South Africa
The South African government has a range of measures in place to help businesses who have been affected by Covid-19.
United Kingdom
The UK government is extending the Self-Employment Income Support Scheme, which was first rolled out back in March 2020.
The taxable grant will cover 80% of your average trading profits over a 3 month period. The amount is paid in a single instalment and is capped at £7,500.
The last date for making a claim for the third grant was 29 January 2021.
Details about the fourth grant will be announced on 3 March 2021.
United States
The US government passed a stimulus bill worth $2 trillion to help those affected by the pandemic, called Coronavirus Aid Relief and Economic Security Act (CARES Act).
If your employment is related to the pandemic, you are eligible to claim half your state’s average weekly unemployment benefit plus an additional $600 a week. It can be claimed for up to 4 months, though if you do claim, it will extend your state benefits for up to 13 weeks.
If you are still self-employed, you can claim $1,200 each or $2,400 per couple and $500 for every child you have under the age of 18. Anyone who earns $75,000 or more will receive a reduced amount.
To claim, you need to visit your local state’s website for further information. Some other schemes are running in light of the pandemic that you may also qualify for when you do so.
To sum up
Remember, the availability of the above funding options in each country is subject to change as the external situation unfolds, so always keep an eye out for updates on official government websites.
If you need expert advice on how to grow your business during these difficult times, please get in touch at team@bark.com. Or you can call us at a time that suits you – we’re open 24/7. Find your local website on www.bark.com.