Here’s what you need to know about the proposed Targeted Income Grant Scheme (TIGS)

TIGS has been proposed to help self-employed workers currently excluded from current government support. We take a look at what’s potentially on offer.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Father working from home and taking care of baby

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The Self-Employment Income Support Scheme (SEISS) has been a lifesaver for millions of self-employed workers in the UK affected by the coronavirus pandemic. But not everyone has benefitted, with many workers not qualifying for the grant. However, support could be on the way in the form of the newly proposed Targeted Income Grant Scheme (TIGS).

Here’s everything you need to know about the new scheme.

What is TIGS?

It’s a scheme intended to support self-employed workers who have been excluded from support packages. It will provide a one-off targeted grant worth between £3,500 and £7,500.

The Gaps in Support All-Party Parliamentary Group, which is made up of 262 MPs from different political parties in the UK, is behind the scheme.

Why do we need TIGS?

The Gaps in Support APPG says the aim of TIGS is to seal gaps in the government’s Covid-19 support package.

While SEISS has provided much-needed support to the self-employed, it is not perfect. Many self-employed workers who require support do not qualify for the scheme.

There are around five million self-employed people in the UK. However, only 3.4 million have claimed SEISS. That means that 1.6 million self-employed people may still need support.

In addition, many others are not considered self-employed under the definitions HMRC provides.

TIGS could help to fix this problem and make sure that all self-employed workers who need support can access it.

Not surprisingly, the scheme is already receiving support from those in the self-employment sector.

For example, Liron Smadja, Director of Global Expansion Marketing at Fiverr, said that:

“The continual mounting issue of SEISS eligibility has left thousands of self-employed workers unable to access government support.

The fourth grant should be an opportunity for the chancellor to solve this crisis and acknowledge that serious consideration needs to be given to this crucial sector of the economy.”

Talking about freelancers, Smadja said that many “remain unrecognised and ineligible” for current support schemes.

She asked the government “to progress with the proposed Targeted Income Grant Scheme to support those who have been self-employed since April 2019.”

Who could benefit from TIGS?

TIGS targets four main groups. We’ve listed them here, together with the proposed grant amount for each.

  1. The newly self-employed (£3,500). People who became self-employed after 5 April 2019, who have not been eligible for SEISS under current rules.
  2. PAYE freelancers (£7,500). People who identify as self-employed for tax purposes but are paid on the payroll for some or all of their work.
  3. Limited company directors (£7,500).
  4. Taxpayers excluded by the SEISS 50/50 rule (£7,500). The SEISS 50/50 rule requires that at least 50% of a person’s trading profits be from self-employment. Their total trading profits must also be £50,000 or less.

The Gaps in Support APPG says that if approved, the scheme could help as many as 2.9 million UK taxpayers.

When will it come into force?

The TIGS proposal has already been presented to the Treasury. Right now, no one knows if it will be approved.

The good news is that Chancellor Rishi Sunak has said that the government is considering the new scheme.

However, any announcements on the scheme are unlikely until the government lays out its budget in March. 

Other support and information

For now, we must wait to see whether the proposed scheme will be approved.

In the meantime, you can head over to the website to find out what other support you are entitled to if you are affected by coronavirus.

Also, consider checking out our Coronavirus Money Guide that contains tips to help you protect your finances during these difficult times.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »