Self Employed Income Support Scheme (SEISS)
The first phase of the Self Employed Income Support Scheme (SEISS) closed on Monday 13 July 2020. Eligible self-employed people whose trade has been adversely affected by Coronavirus on or after Tuesday 14 July, can make a claim for a second grant from Monday 17 August. You do not need to have claimed the first grant to be eligible for the second.
The Chancellor announced on 29 May an extension to the SEISS for eligible self employed people whose trade has been adversely affected by the Coronavirus. Those eligible, will be able to claim a second and final SEISS grant in August. They will receive a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.
If you’re eligible and your business has been adversely affected on or after 14 July 2020, you must make your claim for the second grant on or before 19 October 2020.
Who will qualify?
Individuals who completed a 2019 Self Assessment tax return, whose majority of income was self-employed profits.
- You must have submitted your 2018/19 Self Assessment tax return on or before 23 April 2020.
- Individuals with self-employed profits of less than £50,000.
The self-employed profits need to be the individual’s main source of income i.e. being more than 50% of their total income for the year.
What will I receive?
Phase one of the SEISS opened on 13 May 2020 and closed on Monday 13 July 2020. This was a taxable grant of up to 80% of average monthly trading profits, capped at £7,500, covering March 2020 to May 2020.
Phase two of the grant opened on 17 August and will close on 19 October 2020. Eligible self-employed people whose trade has been adversely affected by Coronavirus on or after Tuesday 14 July can make a claim for a second grant. You will receive a taxable grant worth 70% of your average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total. For those with less than 3 years of trading, the average will be taken from the years submitted. You do not need to have claimed the first grant to be eligible for the second.
Phase three of the grant will provide financial support to self employed individuals who are actively continuing to trade but are facing reduced demand due to Coronavirus. This grant covers November 2020 to January 2021 and HMRC will provide a taxable grant of up to 20% of average monthly trading profits, capped at £1,875.
Phase four is a grant covering February 2021 to April 2021.
HMRC have not yet detailed further information on phase three and four of the grant and we will update you when we know more.
How do I apply?
GOV.UK have updated their website with a handy tool which you can use to check if you are eligible to make a claim, and what date and time you can apply from.
You can find the online tool using the link below:
To use this tool you will need your National Insurance number and your Unique Tax Reference (UTR) number, the latter of which is a 10 digit number which can be found on any correspondence received from HMRC or on the front of your personal tax return.
Once you have entered this information into the online tool you should get a response within seconds telling you whether you can or can’t make a claim.
Please note that we cannot do the claim for you as your agent, you will need to complete the below steps in order to check your eligibility and proceed with the claim process.
GOV.UK would prefer that you make your claim through your Government Gateway account, and if you have an account they then invite you to log on to confirm your details so that they can send you an email reminding you to make your claim.
If you do not have a Government Gateway account, they will give you the option to set one up, which you can do it by clicking on the option on the screen.
For those of you who are unable to claim online, you will need to contact HMRC on 0800 024 1222.
When will I receive the grant?
Payment will be made six working days from your claim being approved.