Gov UK Coronavirus Business Support for Sole Traders and Members of Partnership: Self-Employment Income Support Scheme (SEISS)
The Coronavirus Self-Employment Income Support Scheme (SEISS) offers support to self-employed individuals or members of a partnership as long as certain eligibility criteria are met. If your business has been adversely affected due to coronavirus you might be able to use the SEISS to claim a grant from the UK government.
Adversely affected is typically when your business has experienced lower income or higher costs due to coronavirus.
HMRC expects you to make an honest assessment about whether your business has been adversely affected. There is no minimum threshold over which your business’ income or costs need to have changed.
If you make a claim for the Self-Employment Income Support Scheme grant you’ll have to:
- keep records of how and when your business has been adversely affected
- confirm to HMRC that your business has been adversely affected by coronavirus
Applications for the first grant of up to 80% of your average monthly trading profits capped at £7,500 closed on 13th July 2020. Applications for the second grant covering up to 70% of your average monthly trading profits, capped at £6,750 closed on 19th October 2020.
Limited companies and trusts are not entitled to claim SEISS.
If you are a limited liability company owner or a director, please read through our article on Furlough and the Corona Virus Job Retention Scheme – Guide to Employers and Government Support for small sized businesses Coronavirus Business Interruption Loan Scheme.
Third SEISS Grant to be increased for November
There will be a third SEISS grant covering the period November 2020 to January 2021. The government announced that due to the lockdown the third grant for the Self-Employed Income Support Scheme (SEISS) would be increased to 80% of profits instead of the 40% previously announced and the payment date would be brought forward.
The third grant will cover a 3 month period from 1st November 2020 until 31st January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%. And to ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14th December to 30th November.
There is a fourth and final grant planned to cover the period February 2021 to April 2021. The amount of the fourth grant has not yet been announced by the government. The Government will set out further details, including the level, of the fourth grant in due course.
Who can claim for SEISS
To be eligible for the grant extension self-employed individuals, including members of partnerships, you must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- You can only claim if your average trading profit over the three tax years to 2018/19 was less than £50,000. Also, the majority (over 50%) of your income over that period must come from self-employment
- you carry on a trade which has been adversely affected by coronavirus
- you traded in the 2018/19 tax year and submitted your Self-Assessment tax return to HMRC on or before 23rd April 2020 for that year
- you traded in the 2019/20 tax year
- 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
- declare that you are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1st November and the date of claim)
How to claim for SEISS
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
To apply, you will need:
- Your Self Assessment Unique Taxpayer Reference (UTR)
- Your National Insurance number
- Your Government Gateway user ID and password – if you do not have an existing user ID you can create one when you claim
- Your UK bank details including a bank account number, sort code, name on the account and your address linked to your bank account
We will update our article once the scheme is reopened for the third tranche.
Making claims using an agent or adviser
HMRC is warning taxpayers that they must make the claim themselves. If an agent or adviser attempts to make a claim on behalf of a client this will trigger a fraud alert and the taxpayer will have to contact HMRC. This will cause a significant delay to payment.
Please check our other article on Business Help from UK Government available in our website to Sole Traders and Partners “Government Support for small sized businesses Coronavirus Business Interruption Loan Scheme”
For more information on SEISS, please give us a call on +44 01234 712840and one of our staff members will be happy to assist you.
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