What Is the Self-Employment Income Support Scheme?
This post was originally published on 27 October 2020 and updated on 27 November 2020 for freshness, accuracy and comprehensiveness.
The Government recognises the continued impact that coronavirus is having on the self-employed and has taken action to provide further support.
They have extended the Self-Employment Income Support Scheme (SEISS) to provide critical support in the form of two grants. Each grant is available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
To be eligible, you must:
- have been eligible for the first and second SEISS grant (although you didn’t have to claim)
- declare that you intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus
The Government will provide a taxable grant covering 80% of average monthly trading profits, paid out in a single instalment covering three months’, capped at £7,500 in total.
The Government are providing broadly the same level of support for the self-employed as is being offered to employees through the Job Retention Scheme.
The level of the second grant will be reviewed and set in due course.
The grants are taxable income and also subject to National Insurance contributions.
The claims process opens on 30 November 2020. HMRC will be writing to all who are eligible to provide them with a slot – between Monday 30 November and Friday 4 December – in which to apply.
If you don’t hear from HMRC, but think you are eligible, you can use the online claim process to check if you can claim. The portal for the third grant will be open until 29 January 2021.
You can find out how to claim the SEISS here.
If you have any questions regarding the support available, please don’t hesitate to contact us.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation