COVID-19 Update: Self-employment Income Support Scheme

In order to support self-employed workers who have, or will lose, income due to the COVID-19 pandemic, the Government has set up the Self-employment Income Support Scheme (SEISS).

Announced in March, eligible self-employed workers can claim a grant worth 80% of their profits with a cap of £2,500.00 per month for a three month period via the HMRC website. To access this first grant they must make their claim on or before 13 July 2020.

A second and final grant will begin in August and be worth 70% of eligible workers' average monthly trading profits, also paid out in a single instalment covering three months' worth of profits, and capped at £6,570 in total. Applications for the second grant will open in August and has the same eligibility criteria as the first grant

Requirements for applying:

Individuals can apply for the grant if they are self-employed or members of a partnership and:

• Have submitted their Income Tax Self-Assessment tax return for the tax year 2018/19
• traded in the tax year 2019/20
• are trading when they apply
• intend to continue trading in the tax year 2020/21
• have lost trading profits due to COVID-19

Alongside these requirements, an individuals trading profits must be less than £50,000.00 and more than half of their income must come from self-employment.

How to apply:

HMRC will contact individuals directly if they are eligible and invite them to apply online. Individuals will not be able to apply without this invite.

For more information about the Self-employment Income Support Scheme, click here.

This article is for general information purposes. It is not addressed to any specific parties and does not constitute advice (legal or otherwise) to any person.