Self Employed in scrabble

Self-Employment Income Support Scheme Update

Subscribe

On 29th May, The Chancellor, Rishi Sunak, announced that the Self Employment Income Support Scheme (SEISS) has been extended to allow all self-employed workers in the UK to claim a second grant covering an additional three months profit.

Unlike the first grant, this time it will be restricted to 70% of the average monthly trading profits based on the previous 3 years’ self-employed income, covering the financial years 2016/17 to 2018/19. If your average annual self-employed profits are in excess of £50,000 or your average self-employed income is less than 50% of your total income, you will not be eligible able to make a claim.

The new claims will be able to be made sometime in August (date to be confirmed) and if you have not made your first SEISS claim you have up until 13th July in order to make your claim.

SEISS Eligibilty

The conditions for a claim have not changed. To be eligible you have to be a self-employed individual or a member of a partnership and all of the following must apply:

  • you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
  • you traded in the tax year 2019 to 2020
  • you intend to continue to trade in the tax year 2020 to 2021
  • you carry out a trade which has been adversely affected by coronavirus on or after 14 July 2020.

Examples of your business being adversely affected by coronavirus could be:

  • you're unable to work because you:
  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus
  • you've had to scale down or temporarily stop trading because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work

Assuming these criteria are met, there are further financial conditions – the individual’s trading profits for 2018/19 must be less than £50,000 and more than 50% of their total income. If this condition is not met then a three year average across the tax years 2016/17 to 2018/19 can be considered instead, but still must be less than £50,000 and more than 50% of their average total income.

For more information about how to apply for the first grant read our previous article here.


For more information on the SEISS scheme and your eligibility, please get in touch with Grant Smith on 0808 144 5575 or email covid19help@armstrongwatson.co.uk

Email us