Self-Employment Income Support Scheme – Help for sole traders or partners in a partnership
The self-employment income support scheme (SEISS) forms a major part of the government’s economic rescue plans following the lockdown and was launched on Wednesday 13th May to help about 3.5 million people.
This much anticipated support for the self-employed received over 440,000 applications on its first day, worth a staggering £1.3billion.
If you are self-employed (either as an individual or in a partnership), you can claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month, for 3 months. This support does not apply to limited companies.
If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.
This scheme is being extended. You’ll be able to make a claim for a second and final grant in August 2020. If you’re eligible the second and final grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
You may be eligible for self-employment income support scheme if:
- You’ve lost profits due to coronavirus
- You’ve submitted your Self-Assessment tax return for 2018 to 2019 tax year
- You are currently trading and intend to continue trading
- Your trading profits have been no more than £50,000 for either 2018 to 2019 tax year, or as an average of last 3 financial years – In a partnership, the £50,000 is per partner
- Your trading profits have been more than half of your total income for either 2018 to 2019 tax year, or as an average of last 3 financial years (Trading profits do not include dividends paid from your own company to yourself)
You must claim the support yourself – your accountant or agent cannot do this on your behalf but can obviously help and advise you. Please get in touch if you need extra help.
Please ensure that you claim only if your profits are down due to COVID 19 – HMRC will audit this later.
The steps to claim for the self-employment income support scheme are: