Coronavirus Self Employment Income Support Scheme
This blog post covers the help that was announced by the chancellor with regards to the Self Employed. You can find a key summary and frequently asked questions.
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What is it?
The coronavirus Self Employment Income Support scheme (SEISS) is a grant to help the self-employed who have lost income due to the coronavirus.
SEISS will pay up to 80% of trading profits up to a maximum of £2,500 per month.
Full guidance can be found here:
SEISS applies to individuals that are trading as a sole trader or part of a partnership and have:
· submitted a 2018/19 Tax Return
· traded in 2019/20
· are trading when they apply, or would be except for COVD-19
· intend to continue trade in 2020/21
· have lost trading / partnership profits due to COVID-19
Your profits must have been of less than £50,000 and at least half of income comes from Self-employment. To qualify for this one of the following must be true:
1. your trading profits 2018/19 were less than £50,000 and these profits they are more than half of your total taxable income
2. your average trading profits in 2016/17, 2017/18, and 2018/19 were less than £50,000 and these profits were more than half of your average taxable income in the same period
What will I get?
You will get a taxable grant of 80% of the average monthly profit for the tax years 2016/17, 2017/18 and 2018/19. This will be capped at £2,500 per month. The grant will be for three months initially.
How do I claim?
HMRC will contact you if you are eligible for this grant, with details of how to claim online. The grant will be paid directly into your bank account.
When we receive payment?
Early indications from the chancellor was June.
I became self-employed after 5th April 2019 can I still claim?
Unfortunately, no, you may be able to get support under universal credit.
I haven’t got three tax returns how will they calculate what I get?
They will work an average based on the number of months you have been self-employed.
I am limited company can I claim this?
No, this is only open to Sole-traders and partnerships. You may be able to get support under the Job retention scheme or universal credit.
What if I have other income?
You will need to meet the criteria above.
What if I stopped trading after 5th April 2019 and before COVID-19?
You can’t claim under this scheme.