Self Employed Income Support Scheme Update (SEISS)
What’s new?
The government has updated the Self Employed Income Support Scheme (SEISS) so that you can make another claim. This blog covers all you need to know to see if you are eligible, and what to do next if you are.
If you were eligible under the SEISS, you would now be able to claim a second and final grant from this month (phew!). The award will be worth 70% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of gains (capped at £6,570 in total). As a quick refresh, the first grant was worth 80% of your average monthly trading profits (up to £2,500 per month), covering three months with a maximum claim of £7,500.
When can I claim?
You will be able to claim using the online portal from 17th August. If you are eligible, as with the last grant, you will have been given a date to make a claim. You can claim any time between your allocated date and 19th October 2020.
If you didn’t claim the first time around, but now need the extra help, then you can request the second grant. Likewise, if you did claim last time, but don’t feel it’s necessary, you don’t have to make a second claim.
Am I eligible for the second claim?
Self-employed individuals, including members of partnerships, are eligible if they:
- submitted their Income Tax Self-Assessment tax return for the tax year 2018-19;
- continued to trade in 2019-20 and intend to keep trading in 2020-21;
- carry on a trade which has been adversely affected by COVID-19;
- have average self-employed trading profits of no more than £50,000 and (at least) equal to their non-trading income.
I’m a new parent!
Congratulations! What a journey. If the impact of your new addition caused you to miss out on the previous grant, HMRC have made some allowances, which may help you to claim this time around. So, you may be able to claim if having a new child either:
- affected the trading profits or total income you reported for the tax year 2018 to 2019
- meant you did not submit a Self Assessment tax return for the tax year 2018 to 2019
You still have to meet all the other eligibility criteria. HMRC will work out your eligibility and average trading profits based on your Self Assessment tax returns for either the:
- average of the tax years 2016 to 2017 and 2017 to 2018 if you were self-employed in both these years
- the tax year 2017 to 2018 if you were not self-employed in the tax year 2016 to 2017
If you’re already eligible for the grant based on your 2016-2017, 2017-2018 and 2018-2019 Self Assessment tax returns, your grant amount will not change.
What else do I need to check?
There are several other circumstances that HMRC have outlined additional detail on, which may affect your eligibility. Such as:
- If your tax return is late, amended or under enquiry
- If you have loans covered by the loan charge and haven’t agreed on a settlement with HMRC before 20th December 2019
- If you claim Averaging relief (for creatives)
- If you’re a Military Reservist
- If you started self-employment from 6th April 2018
I’m eligible! Sign me up.
Just like with the first claim, we (as agents) aren’t able to file claims on your behalf. It must be completed directly by you. We will always help where we can though, so if you would like to discuss claiming with the team, please do get in touch. We’re only ever a phone call (or email, or DM) away.
Useful links
There is more information on SEISS in our previous blog here: https://www.tenforwardfinance.co.uk/2020/04/04/seiss/
HMRC have published information to check if you are eligible here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Check your circumstances:
HMRC’s factsheet from the announcement on the 29th May can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/888764/Factsheet_for_SEISS_and_CJRS_schemes.pdf
