The Self-employment Income Support Scheme (SEISS) has been introduced to support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19).
This new scheme will allow the self-employed to apply for a grant of 80% of their average profits up to a maximum of £2,500 per month. To calculate your average income, HMRC will look at your last three tax returns. If you have not traded for three years HMRC will take the average of the tax returns you have submitted.
To be eligible for the scheme you must have taxable profits of less than £50,000, make the majority of your income from self-employment and have filed a 2018/19 tax return. The government has given late filers until 23rd April to get their tax return submitted.
Self-employed workers will be able to access the scheme from the beginning of June by submitting an online form, although this is still in development. If you believe you are eligible for the scheme you do not need to contact HMRC at this stage. They will be in contact with taxpayers that are eligible for this scheme directly.
The government has been clear that this scheme will not be open to those contractors operating through their own limited company. Instead, you will need to consider if you are eligible for a grant under the Coronavirus Job Retention Scheme.
With you all the way
If you have any queries on SEISS, or are in need of accounting support during this time, our teams are happy to help. If you're an existing client please call our client services team on 01925 645155.
For a full breakdown of all the support available to businesses during the COVID-19 crisis please visit our page here.