Due to the Corona-virus pandemic many businesses have been forced to close. The government have created a number of schemes to help prevent to economic collapse. One of the scheme released is aim at individuals who are self-employed or a member of a partnership.
The self-employed income support scheme (SEISS) will be an online service for the self-employed or partnership member who have lost income due to COVID-19.
Currently the grant will be available to claim for 3 months, although this may be extended depending on how the situation regarding corona-virus develops. In those three month you may claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. HMRC aim to contract applicants by mid May 2020 and begin payments by early June 2020. During this period of waiting, you may make a claim for Universal Credit.
Who can claim?
SEISS is a scheme for self-employed individuals or a member of a partnership, as long as your trading profits are no more than £50,000 and more than half of your total income for either:
Tax year 2018/19
Average of tax years 2016/17, 2018/18 and 2018/19
In order to claim as a self-employed individual or partnership member will have to confirm to HMRC that your business has been adversely affected by the pandemic. You must also have:
Submitted your Self Assessment tax return for the tax year 2018 to 2019
Traded in the tax year 2019 to 2020
Are trading when you apply, or would be if it wasn't for Corona-virus
Intend to continue to trade in the tax year 2020 to 2021
Lost trading profits due to Corona-virus
If you have not submitted a tax return for all three years required, your average trading profits will be worked out from the continuous periods of being self-employed. If you were self-employed in previous years but the period has not been continuous, the trading profit will be worked out on the most recent period of self employment only.
How to Claim?
You cannot make a claim yet. HMRC will aim to contact you by mid May 2020 if you’re eligible for the scheme, and invite you to claim using the GOV.UK online service. If you’re unable to claim online an alternative way to claim will be available.
Once HMRC has received your claim and your grant is approved, we will contact you to tell you how much you’ll get and the payment details.
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