Self-employment income support scheme (SEISS)

Produced by Tolley
  • (Updated for Budget 2021)
  • (Updated for Coronavirus (COVID-19))
Self-employment income support scheme (SEISS)

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)
  • Who is eligible?
  • Eligibility for the fourth grant
  • Calculation of eligibility for fourth grant
  • Eligibility for first three grants
  • Calculation of trading profits and non-trading income
  • Trading profits
  • Non-trading income
  • Amount of the grant
  • Amount of fourth and fifth grants
  • More...

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 three grants paid so far and the fourth SEISS grant was announced at Budget 2021 and takes 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, will be eligible to claim this grant. The fourth SEISS grant is set at 80% of three months’ average trading profits, paid out in a single instalment, capped at £7,500. This grant is open for claims in late April 2021 and a claim must be made by 31 May 2021. For the eligibility criteria, see ‘Who is eligible?’ below. It was also announced at Budget 2021 that there will be a fifth and final grant covering May to September 2021; for further details, see ‘Amount of the grant’ below.

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

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 received after the 2020/21 tax year will be taxed in the year of receipt. For more details, see the Taxation of coronavirus (COVID-19) support payments guidance note.

Who

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