Self-Employment Income Support Scheme

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19).

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month (£7,500 in total), the First Grant covering 3 months. The scheme has now been extended to cover a further 3 months worth of profits (the Second Grant), but at a rate of 70% and capped at £6,570 in total.

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

  • submitted your Income Tax Self Assessment tax return for the tax year 2018-19 on or before 23 April 2020
  • traded in the tax year 2019-20
  • are trading when you apply, or would be except for COVID-19
  • intend to continue to trade in the tax year 2020-21
  • have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and be at least equal to your non-trading income. This is determined by at least one of the following conditions being true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits constitute more than half of your total taxable income
  • having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period.

If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.

HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.

To check if you are eligible, enter your Self Assessment Unique Tax Payer Reference (UTR) and NI Number here

How much you'll get

For the First Grant, you’ll get a taxable grant which will be 80% (Second Grant 70%) of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount. It will be up to a maximum of £2,500 per month for 3 months for the First Grant and £2,190 per month for the Second Grant.

The grants will be paid directly into your bank account, in two instalments.

How to access the scheme

HMRC will contact you if you are eligible for the scheme and invite you to apply online. For the First Grant you must make your claim by 13th July 2020. The application for the second and final grant is due to open in August 2020. You can make your claim here and will need the following details to hand:

  • Self Assessment Unique Tax Payer Reference (UTR)
  • NI Number
  • Government Gateway user ID & password
  • UK Bank details

Be aware of fraud and phishing - If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.

If you claim tax credits you’ll need to include the grant in your claim as income.

Self Assessed Income Tax Payments

The Government are deferring income tax payments due in July 2020 under the self-assessment system to 31 January 2021 with no penalties or interest for late payment.

Am I eligible?

Available for all individuals in the UK registered for Self Assessment that are having difficulty making the payment on account due to the impact of coronavirus.

How to access the scheme

You do not need to advise HMRC if you choose not to make the payment.

If you choose to defer and normally make your payments on account by Direct Debit, you should cancel your Direct Debit through your bank as soon as possible so that HMRC will not automatically collect any payment due. You can cancel online if you’re registered for online banking.

After the deferral ends, if you have not paid by 31 January 2021, the usual interest, penalties and collection procedures will apply to missed payments.

Other financial support

If you’re getting less work or no work because of coronavirus, you can also:

  • you or your child might have coronavirus or you’re recovering from it
  • you or your child are self-isolating because you came into contact with someone who might have coronavirus
  • you have been told to stay at home for at least 12 weeks by the NHS because you are at risk of severe illness

You do not need to go into a Jobcentre Plus office to apply or get a payment.

For further information or to make an application see the webpage. Our sister company Price Pearson are on hand if you wish to discuss your individual needs regarding self employment support for the impact of Covid-19.

Last updated: 24 Jun 2020 11:30 AM