Self-Employment Income Support Scheme

The Self-employment Income Support Scheme (SEISS) will support Self-Employed individuals (including Self-Employed’s of partnerships) who have lost their income due to coronavirus.

The scheme will allow Self Employed individuals to claim a Taxable Grant worth 80% of your trading profits up to a maximum of £2,500.00/month for the next 3 months.

If necessary it may be extended if needed.

Self-Employment Income Support Scheme

Self Employed individuals can claim a Taxable Grant worth 80% of their trading profits up to a maximum of £2,500.00/month for the next 3 months


Eligibility

You will be eligible to apply if you are a self-employed individual or a member of a partnership and:

  • have submitted your Income Tax Self Assessment tax return for the tax year of 2018-19,
  • traded in the tax year 2019-20 (6th of April 2019 to 5th of April 2020),
  • still trading when you apply, or would be except work loss because of Coronavirus,
  • intend to continue to trade in the tax year 2020-21 (6th of April 2020 to 5th of April 2021),
  • have lost trading/partnership trading profits due to Coronavirus.

The self-employed trading profits must be less than £50,000.00 and more than half of the income should come from self-employed trading.

This is determined by at least one of the following conditions to be true:

  • having trading profits/partnership trading profits in 2018-19 of less than £50,000 and that profit 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 tax year.

If you started trading anytime between 6th of April 2016 to 5th of April 2019, HMRC (Tax Office) will only use those years for which you filed a Self-Assessment tax return.

If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19 (6th of April 2018 to 5th of April 2019), you must do this by the latest of 23rd of April 2020.

HMRC (Tax Office) will use data on your 2018-19 returns already submitted to identify who is eligible and will risk assess any late returns filed before the 23rd of April 2020 deadline in the usual way.


How much you can get?

Self Employed individuals able to get a taxable grant which is limited to the 80% of the average profits from the tax years (where applicable):

  • 2016 to 2017
  • 2017 to 2018
  • 2018 to 2019

How its gonna be calculated?

HMRC (Tax Office) will add together the total trading profit for the above 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.

It will be limited to maximum of £2,500.00/month for 3 months.

HMRC (Tax Office) will pay the grant directly into the Taxpayer’s bank account, in one instalment.


How to apply

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

Please do not contact HMRC (Tax Office) right now and doing so will only delay the urgent work being undertaken to introduce the scheme.

You can access this scheme only through GOV.UK.

 

More information: Self-Employment Income Support Scheme