What is SEISS?
Self-Employment Income Support Scheme (SEISS) has been set up by the government to provide support for those who are self-employed, either as a sole trader or a partner in a partnership and who have been trading during the 2018/19 tax year, and have been adversely affected by a coronavirus (COVID-19).
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.
If you receive the grant you can continue to work, start a new trade, or take on other employment including voluntary work, or duties as an armed forces reservist.
Who can claim?
You can claim if you’re a self-employed individual or a member of a partnership and:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by a coronavirus
Your business could be adversely affected by coronavirus if, for example:
- you’re unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
- you’ve had to scale down or temporarily stop trading because:
- your supply chain has been interrupted
- you have fewer or no customers or clients
- your staff are unable to come into work
To work out your eligibility HMRC will first look at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
To find out how HRMC will work out your eligibility and calculate your grant, read here.
How much you’ll get
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then it will be divided by 3.
The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. The online service will tell you how HMRC has worked the grant out.
How to claim
You’ll only need your:
- Self Assessment UTR
- National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online
- bank account number and sort code you want to be paid the grant into
You’ll have to confirm to HMRC that your business has been adversely affected by a coronavirus.
Your tax agent or adviser cannot make the claim for you. You must make the claim yourself. If you have an agent you should contact them if you need any help or support.
Where to claim
Claim on the HMRC website.
After you’ve claimed
Once you’ve submitted your claim, you will be told straight away if your grant is approved. You will be paid the grant into your bank account within 6 working days.
Where can I read more?
You can check the HMRC website for more details about the scheme.