The Chancellor said that self-employed people who are facing financial difficulties due to the ongoing health crisis will have 80 per cent of their wages covered by the government.

The financial package, which promises help for groups such as builders, taxi drivers, hairdressers, and childminders, comes after the Government faced widespread criticism for not protecting the sector sooner.

Here's how it all works:

(Photo: Matt Dunham - WPA Pool/Getty Images)

How does the scheme work?

The Chancellor announced that self-employed workers will be able to access a taxable grant that is worth 80 per cent of their average monthly profits over the last three years, up to the value of £2,500 per month.

The scheme will be open for at least three months across the UK, and will be extended if necessary.

The grant covers the same amount of income as the government has offered for furloughed employers, who have also been offered a grant worth 80 per cent.

(Photo: Julian Simmonds - WPA Pool/Getty Images)

The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.

Who is eligible for the scheme?

You can claim if you’re a self-employed individual or a member of a partnership and you:

- have submitted your Self Assessment tax return for the tax year 2018 to 2019

- traded in the tax year 2019 to 2020

- are trading when you apply, or would be except for coronavirus

- intend to continue to trade in the tax year 2020 to 2021

- have lost trading profits due to coronavirus

You will need to confirm to HMRC that your business has been adversely affected by coronavirus. HMRC will as usual use a risk based approach to compliance.

For more information on eligibility, head to the Government's website

When will the scheme be available?

The online service you’ll be able use to claim is not available yet.

HMRC say they will "aim to contact you by mid May 2020" if you’re eligible for the scheme, and invite you to claim using the GOV.UK online service. They hope to make payments "by early June 2020."

If you’re unable to claim online an alternative way to claim will be available. We will update this page with more information soon.

How much will I get?

You’ll get a taxable grant based on your average trading profit over the 3 tax years:

- 2016 to 2017

- 2017 to 2018

- 2018 to 2019

To work out the average trading profit, HRMC will add together your total trading profits or losses for the three tax years, then divide by three.

If you have not submitted Self Assessment tax returns for all 3 years, HRMC will work out your average trading profit based on continuous periods of self-employment, which will be either:

- the tax years 2017 to 2018 and 2018 to 2019

- the tax year 2018 to 2019 only, even if you were self-employed in the tax year 2016 to 2017

The grant will be 80% of your average trading profit, divided by 12 which will give a monthly amount. The Government will pay this or up to a maximum of £2,500 a month, whichever is lower.

The grant will be paid directly into your bank account in one instalment.

For more information on the Self-employment Income Support Scheme, head to the Government's website

Self-employed Income Support: how to claim a grant through the UK government's new coronavirus scheme