(Adds detail on applying and who the scheme will reach)
LONDON, March 26 (Reuters) - British finance minister Rishi Sunak announced a system of grants to support self-employed people who are losing income because of the coronavirus.
Here’s how the grants will work.
Self-employed people will be eligible to taxable grants of 80% of their average monthly profits over the last three years, up to 2,500 pounds ($3,000) per month.
Anyone who gets the majority of their income from self-employment with trading profits of up to 50,000 pounds is eligible. A treasury official said up to 3.8 million workers will be covered. Sunak said that 95% of people who are majority self-employed will benefit from the scheme.
The government expects the scheme to be working by the middle of June and the grants to cover the months of March, April and May.
The scheme is not yet open for applications. Britain’s tax authority will determine who is eligible and contact them to invite them to apply. (Reporting by Elizabeth Howcroft and William James; editing by Stephen Addison)