The Self-Employment Income Support Scheme (SEISS) opens on the 13th of May 2020. This new scheme is designed to provide income support for self-employed workers who have been adversely affected by the coronavirus (COVID-19) outbreak. Read on to find out if you’re eligible, how much you could claim, and how to apply.
How much could you claim through SEISS?
SEISS will enable eligible individuals to claim a taxable grant of 80% of their average monthly trading profits up to a maximum of £7,500. The payment will be made in one single instalment that is designed to cover three months and will be subject to Income Tax and self-employed National Insurance.
Who is eligible for self-employed income support?
Not all self-employed workers will be eligible for self-employed income support. You are eligible to claim SEISS if you are a self-employed individual or member of a partnership and:
- You traded in the tax year 2018-19 and submitted a Self Assessment tax return on or before the 23rd April 2020.
- You traded in the tax year 2019-20.
- You plan to continue trading in the tax year 2020-21.
- Your trade has been adversely affected by COVID-19.
In addition to fulfilling these criteria, you must also have had trading profits of less than £50,000 per year and at least equal to your non-trading income. For more information on HMRC’s process for determining eligibility, visit this page.
Those who receive the SEISS grants will still be able to continue working, start a new trade altogether, or volunteer. At present, these self-employed grants are being introduced as a temporary measure, but they may be extended.
How to claim SEISS
The online application service will be available from the 13th May 2020. To apply, you should check your eligibility using the Government’s online tool now. Make sure that you have your Self Assessment Unique Taxpayer Reference (UTR) number and National Insurance (NI) number ready for this part.
Once this online tool has confirmed that you’re eligible, you’ll be told the date from which you can make a claim and asked to supply contact details. When the date arrives, you will be sent a reminder telling you to apply. Once your claim has been approved, you will receive your one-time payment within 6 working days.
After you’ve received your SEISS grant
Once you’ve received your SEISS grant, it’s important that you keep full and accurate records of the amount you claimed, your claim reference number, and evidence of the impact of COVID-19 on your business. You’ll need to report that you have received this funding for the self-employed and provide these details when you come to complete your Self Assessment tax return, claim Universal Credit, or tax credits.
We hope that this blog has provided you with all of the information you needed about the Self-Employment Income Support Scheme (SEISS). If you have any further questions, don’t hesitate to get in touch with us.