HMRC has announced that this week they will start contacting people who may be eligible for the new Self-Employment Income Support Scheme (SEISS). The scheme will allow the self-employed to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits.
You can claim if you are a self-employed individual, or a member of a partnership whose business has been adversely impacted by coronavirus and:
- traded in the tax year 2018 to 2019 and have submitted a Self-Assessment tax return for that year on or before 23rd April 2020
- traded in the tax year 2019 to 2020
- are trading when you apply - if you have temporarily stopped trading because of coronavirus you will still be classed as trading by HMRC
- intend to continue to trade in the tax year 2020 to 2021
Your trading profits must also be no more than £50,000, and at least half of your total income for either:
- the tax year 2018 to 2019
- the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019
HMRC have published updated guidance online at: https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme, which clarifies the eligibility criteria, the application process and how the grant is calculated.
If you have a Self-Assessment Unique Taxpayer Reference, you can check your ability for SEISS online here: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference.
