Self-employment income support scheme (SEISS)

Produced by Tolley
  • (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?
  • Example
  • No three-year trading history
  • Administration
  • Calculation of trading profits and non-trading income
  • Trading profits
  • Non-trading income
  • Amount of the grant
  • Example
  • More...

During the coronavirus (COVID-19) pandemic, self-employed individuals and members of partnerships were able to claim a taxable grant worth 80% of their average trading profits from the last three tax years, ie 2016/17, 2017/18 and 2018/19.

This was for an initial period of three months and was subject to a maximum amount of £7,500 in total for these three months. This first scheme closed on 13 July 2020.

However, as the pandemic continued, the scheme was amended a number of times. The initial extension of the scheme allowed a second grant that could be claimed from 17 August 2020, which closed on 19 October 2020.

As part of the Winter Economy Plan, the Chancellor announced that the SEISS has been extended to cover a further two grants lasting six months from November 2020 to April 2021. The amount of the grant has been amended several times, see below under ‘Amount of the grant’. The eligibility criteria for the third scheme is essentially the same as the original schemes but there are some differences when looking at the impact of coronavirus as detailed below. HMRC guidance can be found at ‘Check if you can claim a grant through the self-employment income support scheme’.

A grant is taxable and subject to national insurance and will also be recognised as income for the purposes of universal credit and tax credits, but will not have to be repaid. Individuals can carry on working or take on other employment and still receive the grant.

Who is eligible?

In order to be eligible for the grant, claimants will have to have filed a tax return for 2018/19, continued to trade into the tax year 2019/20, intend to continue to trade into the tax year 2020/21 and be trading when the application is made, or would have been trading had the coronavirus outbreak not occurred.

For the third grant available in November 2020, the claimant must be trading but have reduced demand due to coronavirus

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