Self-Employed Income Support Scheme – Covid19

UPDATE – 3rd March 2021

The fourth SEISS grant

The grant will be available to claim from late April 2021. Just like previous grants, trading profits should be a maximum of lb50,000 and at least equal to non-trading income in order to claim your fourth SEISS grant.

Eligibility for that fourth SEISS grant will also depend on whether your company experienced a substantial financial impact from coronavirus between February 2021 and April 2021.

The calculation takes into account the most recent 2021/20 tax submission, to qualify for more or less than ever before granted.

The online claims service for that fourth grant will be live from late April to allow HMRC time to process recently submitted 2021-20 Self Assessment tax returns.

The latest this grant could be claimed for is the 31st May 2021.

The fifth SEISS grant

The UK Government has also announced that there is a fifth and final SEISS grant covering May 2021 to September 2021. The amount of the 5th grant is decided because when much your business turnover continues to be reduced.

The grant is going to be worth 80% of three months' average trading profits, limited to lb7,500, for those with a higher decrease in turnover (30% or more). For those having a lower reduction in turnover, of less than 30%, then the grant is going to be worth 30% of 3 months average trading profits.

You can claim the fifth grant from late July 2021 if eligible. Further details is going to be provided on the fifth grant in due course.

UPDATE – 26th January 2021

The fourth SEISS grant

Information about the fourth SEISS grant will be provided on 3 March 2021.

UPDATE – 30th November 2021

Applications are actually open for the third SEISS grant to support self-employed people affected by coronavirus (COVID-19).

• Be conscious that, like SEISS 1 and a pair of, tax agents cannot claim this grant with respect to their customers; they must do so themselves. If the agent tries to make a claim on a client's behalf, it'll trigger a fraud alert that will delay the payment. Applying online is fast and simple.

Who is eligible

• be self-employed or a member of a partnership – they cannot claim the grant if they trade via a limited company or a trust

• have traded in both the tax years 2021 to 2021 and 2021 to 2021.

For this third SEISS grant customers should also now:

• either be currently trading but they are influenced by reduced business activity, capacity or demand, or have been previously trading but they are temporarily unable to achieve this because of coronavirus
• declare that they plan to still trade, or restart trading, and that they reasonably believe that the impact on their own business will cause a significant reduction in their trading profits

• only claim when the reduction in profits is brought on by reduced business activity, capacity or demand, or wherewithal to trade due to coronavirus – reduction in profits because of increased costs (such as having to buy masks) does not make a business eligible for the 3rd SEISS grant.

When deciding if the reduction is significant, customers will need to consider their wider business circumstances.

HMRC expect claimants to create an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to they would otherwise expect to achieve during this time period.

Your business should have been impacted on or after 1 November 2021. Customers must keep evidence that shows how their business has been influenced by coronavirus, resulting in reduced activity, capacity or demand, or a temporary wherewithal to trade.

UPDATE – 04th November 2021

• Third grant increased from figures released on 23rd October.
• Third grant open to claim from 30th November 2021.
• 55% of average trading profits for A few months, subject to a cap of lb5,160. This will cover November 2021 to January 2021.

UPDATE – 23rd October 2021

The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2021 to January 2021 and February 2021 to April 2021.

The extension will last for 6 months, from November 2021 to April 2021. Grants is going to be paid in 2 lump sum instalments each covering a three-month period.

• The third grant will cover a three-month period from 1 November 2021 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid in one instalment covering 3 months' worth of profits, and limited to lb3,750 as a whole.

The Government are providing broadly the same level of support for that self-employed out of the box being deliver to employees with the Job Support scheme.

• The fourth grant will cover a three-month period from 1 February 2021 until 30 April 2021. The federal government will evaluate the level of the 2nd grant and set this in due course.

The grants are taxable income and also subject to National Insurance contributions.

UPDATE – 24th September 2021

Two additional grants under the Self-employed Income Support Scheme (SEISS) will be issued.

• Third grant available from November 2021 – 20% of average monthly profits for 3 months until the end of January, up to and including total of lb1,875 (susceptible to change, detailed information released end of October 2021).

It will be available to current SEISS recipients who still face reduced demand due to coronavirus.

• Fourth grant will be offered by February 2021. The facts of this grant will be released in the end.

UPDATE – 17th August 2021

The second grant of lb6,570 is now available to claim.

Deadline: 19th October 2021

The same information is required when it comes to first claim. See details below

If you're eligible for the second and final grant, as well as your business continues to be adversely affected on or after 14 July 2021 you'll be able to make a claim in August 2021. You are able to claim for the second grant even though you did not claim for that first grant.

Update as at 15th May 2021

HMRC has opened the Self-Employed Income Support Scheme, where freelancers and contractors can apply as much as 80% of lost earnings inside a lb7,500 lump sum payment.

To be eligible for a this grant, oneself employed income should be below lb50k Which amount must be >50% of total income.
Click the link to apply

It is an extremely quick seamless application, information required:

1. Personal UTR Number

2. National Insurance Number

3. Government Gateway ID and Password

4. Banking account Information (where you would like the grant paid into)

The system automatically calculates if you're entitled to the grant and just how much you're to get based on your historic submitted returns.

Only get this to claim if you’re self-employed or perhaps a member of a partnership and also have been adversely affected by coronavirus (COVID-19).

Around 3.5m self-employed freelancers and contractors will already have been contacted by HMRC, deeming that they're eligible for the Self-Employed Income Support Scheme (SEISS).

Freelancers and the self-employed can apply for a one-off payment of up to lb7,500 covering 3 months. This really is based at taking a look at your tax statements within the last 3 years and then averaging your monthly income. Only freelancers and also the self-employed who have been earning as much as lb50,000 a year can use for that self-employed coronavirus income support scheme.

The grant does not need to be repaid but will be susceptible to tax and national insurance.

Money should hit accounts by May 25 or six working days after a claim is created.

The Treasury is considering dropping the ceiling for self-employed support to lb30,000 once the scheme is extended.