Nick Band, Founder of Pimento People, the freelance recruitment agency has devised 11 suggestions, which you can do if you are a freelancer to protect your income during the Coronavirus - Covid 19 Pandemic. 

In response to the coronavirus crisis, the Government has put together an unprecedented rescue package for those on PAYE but has almost totally ignored the 5 million self-employed. But with work drying up freelances still face a difficult situation.

Pimento People have looked at what The Treasury can do, along with other suggestions. 

1. Firstly, The Treasury has relaxed the rules around claiming Universal Credit- the relatively new set of benefits that replaces things like job seekers allowance and housing benefits. The minimum income threshold has been scrapped. Universal Credit ‘standard allowance’ - £323.22 a month for single people and £507.37 a month for couples - will be raised by £1,000 for the next 12 months, with working tax credits increased by the same amount. To get this support you will need to be able to show that:

• Self-employment is your main job or your main source of income.
• You get regular work from self-employment.
• Your work is organised - this means you have invoices and receipts, or accounts. 
• You expect to make a profit.

Find out more about this here. 

2. If you are set up as a limited company, you may benefit from the £330bn package of help offered by the Government. Don’t forget this is an offer of a loan and will have to be repaid.

3. The dreaded IR35 which treats freelancers on long term contracts in the same way as employees for income tax purposes has also been postponed for a year.

4. All VAT returns have been delayed until the end of June and self-assessment income tax returns will not have to be made until January 2012.

5. You might be able to claim Employment and Support Allowance (ESA) if you’re ill, or elements of Universal Credit if you need help with costs like children or housing. If you can claim contributory Employment and Support Allowance (ESA), this will now be payable from the first day, rather than after eight days.

6. The Government has introduced Time to Pay arrangements - a time-limited deferral period on HMRC liabilities owed and a pre-agreed time period to pay these back – for businesses and self-employed individuals in financial distress and with outstanding tax.

7. Pimento People are set to see a new, temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, to support businesses to access bank lending (loans of up to £1.2 million) and overdrafts. The government will provide lenders with a guarantee of 80% on each loan with no interest payable for 12 months.

8. Check your health and income protection insurance policies if you have them.

9. Speak to your clients about ensuring prompt payments from them.

10. Contact your MP to lobby them for more Government help. The MP Tracy Brabin is compiling a dossier on how COVID-19 is affecting the self-employed. If you've lost work due to being ill or have had work cancelled due to the virus, please let her know your story. If enough people tell the government what is going on out there it may help form future policy. 

11. Use the free time you will have to prepare your career for the next stage. Update your CV, build yourself a website to showcase your work. There are plenty of free, easy to use website builders like wix.com.

Find more about Pimento People here.