A guide to the Self-Employment Income Support Scheme

On the 25 March 2020, Chancellor Rishi Sunak announced the Self-Employment Income Support Scheme (SEISS). This allowed HMRC to calculate and provide an appropriate taxable grant to self-employed individuals ‘whose livelihoods are adversely affected by coronavirus’, based on their average income.

The news was well-received. There had been concern that the self-employed would need to wait on Universal Credit until their industries were able to operate again. Now, with the scheme being extended with a second grant, a large number of sole traders are able to come out of lockdown relatively unscathed.

Who qualifies for SEISS?

To be eligible for SEISS, there are a series of requirements you’ll need to meet. These are:

• you must earn the majority of your income through self-employment
• your average trading profits need to be less than £50,000 a year
• you’ve filed a tax return for the 2018/19 tax year
• you’ve traded during the 2019/20 tax year and intend to continue trading in 2020/21

Of course, this will allow some self-employed individuals to get support even without three years’ worth of tax returns. If that applies to you, then averages will be taken using any self assessment history that is available.

However, those without a single, full year’s self assessment history (those who became self-employed in the 2019/20 tax year) won’t qualify. This is to prevent fraudulent claims.

Find out more > https://www.moneydonut.co.uk/blog/20/07/guide-self-employment-income-support-scheme