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Self-employment Income Support Scheme

  • 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 for the next 3 months. This may be extended if needed.

    Who can apply

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

    • have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
    • 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 more than half of your income come from self-employment. 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.

    How much you’ll get

    You’ll get a taxable grant which will be 80% 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.

    How to apply

    HMRC will contact you if you are eligible for the scheme and invite you to apply online.

    Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

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

    DISCLAMER: The purpose of the information is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Citygate Accountants for further assistance.