Self-employment income support scheme (SEISS)

Produced by Tolley
  • (Updated for Budget 2021)
  • (Updated for Coronavirus (COVID-19))

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Self-employment income support scheme (SEISS)
  • Reporting SEISS under self assessment
  • Who is eligible?
  • Eligibility for the fifth and fourth grants
  • Calculation of eligibility for fifth and fourth grants
  • Eligibility for first three grants
  • Calculation of trading profits and non-trading income
  • Trading profits
  • Non-trading income
  • Amount of the grant
  • More...

Self-employment income support scheme (SEISS)

During the coronavirus (COVID-19) pandemic, self-employed individuals and members of partnerships are able to claim taxable grants known as SEISS. There have been four grants paid so far and the fifth SEISS grant opened late July 2021 and a claim must be made on or before 30 September 2021. The fourth and fifth grants take into account 2019/20 tax returns, so those who became self-employed in 2019/20, who were excluded from the previous grants as they were based on average trading profits for 2016/17, 2017/18 and 2018/19, are eligible to claim these grants. The level of the fifth SEISS grant is determined by a turnover test, see more details below under ‘Amount of the grant’.

In summary, the previous grants were as follows:

  1. first grant for an initial period of three months, subject to a maximum amount of £7,500 in total, closed on 13 July 2020

  2. second grant, which could be claimed from 17 August 2020, for a maximum of £6,570, and which closed on 19 October 2020

  3. third grant, which covered November 2020 to January 2021, it was capped at £7,500 and closed on 29 January 2021

  4. fourth grant, which covered February 2021 to April 2021, which was capped at £7,500 and closed on 31 May 2021

If the business was not eligible to claim any of the grants when the claim was made, they must tell HMRC within 90 days of receiving the grant. The process for informing HMRC is set out in Tell HMRC and pay back a self-employment income support scheme grant.

Reporting SEISS under self assessment

The grant is taxable and subject to national insurance and is also recognised as income for the purposes of universal credit and tax credits. Individuals can carry on working or take on other employment and still receive the grant.

A grant under SEISS received before 5 April 2021 is taxable in the tax year 2020/21, and it was announced in Budget 2021 that amounts

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