Self-Employment Income Support Scheme (SEISS)


What is SEISS?

  • The scheme was announced by the chancellor Rishi Sunak on 26th March 2020.
  • Designed to assist Self-Employed individuals whose trade has been adversely affected as a result of coronavirus.
  • The Government will pay 80% of Self-Employed income averaged over the previous three tax years.
  • Payments are capped at £2,500 per month.

Who is eligible?

  • You must be Self-Employed (or member of Partnership or LLP).
  • You must be carrying on a trade adversely affected by coronavirus.
  • You must have been trading in the 2018/19 tax year and intend to continue trading in 2020/21 tax year.
  • Trading profits must not exceed £50,000 or exceed 50% of your total income for either:
    – The 2018/19 tax year
    – The average of the previous three tax years (2016/17, 2017/18 and 2018/19).

What do I need to do?

  • First, check whether you are eligible – HMRC has provided the following link to check:

https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

You will need the following information:
– Your Unique Taxpayers Reference (UTR) Number
– Your National Insurance (NI) Number

Both of these can be found on your most recent Self-Assessment Tax Return.

  • If you are eligible, you will need to register yourself for a Government Gateway ID, if you don’t already have one.
  • From the date provided by HMRC, you will be able to process your claim. For this you will need your Bank Account Number and Sort Code.

What happens next?

  • Once you have submitted the claim, you will be advised immediately if the grant is approved, and payment will be received within six working days.
  • For your Self-Assessment records, you will need to keep a note of the amount claimed and claim reference, along with evidence that your business was adversely affected by coronavirus.

FAQs

  • I’m eligible! How much will I receive?This is calculated as follows:
    Average Trading Profit / 12 months x 3 months (for the period April- June) x 80%
    Example based on £24,000 average trading profit (across whatever period)
    £24,000 / 12 x 3 * 80% = £4,800 would be the value of the grant
    Reminder – payment is restricted to £2,500 per month, therefore £7,500 is the maximum grant you can receive.
  • What is deemed “adversely affected”?
    This is if any of the following three criteria are met:
    – Your supply chain has been interrupted
    – You have fewer or no customers/clients
    – Your staff are unable to come into work
  • Am I able to continue working whilst also applying for the grant?
    Yes, if you are in a position where you can continue working, even in a limited fashion, then that will not exclude you from the SEISS.
  • I’ve only been trading for two tax  years – will this impact on my claim?
    No, so long as since you started trading you meet the eligibility criteria. HMRC will calculate any claim using the information they hold, based on the number of years you have been trading up to a maximum of three tax years.
  • How long will the scheme last?
    Currently the scheme will continue until 30th June 2020 but is subject to future extensions if deemed appropriate.
  • I started trading after 6th April 2019 – Does this scheme help me?
    Currently there is no support under the SEISS for anyone who started trading in the 2019/20 tax year.
  • I think I should be eligible, however HMRC disagree, what should I do?
    You can contact HMRC and ask that they review the information from which they base this assessment.
  • Can my accountant/tax advisor make the submission on my behalf?
    Unfortunately, HMRC require the individual to make the grant submission themselves.

Useful Links

General information about the SEISS, with additional quirks regarding eligibility:

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

Information about the claims process:
https://www.gov.uk/government/news/self-employed-invited-to-get-ready-to-make-their-claims-for-coronavirus-covid-19-support

Information about trading profits and calculations. (Note: These values are available from your previous tax return(s.):

https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme



Please contact us if you have any queries or questions and would like any assistance with your submission.

Comments are closed.