Self-Employment Income Support Scheme
What is the Self-Employment Income Support Scheme
In March, the Chancellor announced an extension to the Self-Employment Income Support Scheme (SEISS) supporting self-employed people whose income has been impacted by the Covid-19 pandemic. Following on from three initial grants, two further grants were announced – one covering the months February to April 2021, and a fifth and final grant covering the period May to September 2021, timed to align with the winding down of the furlough scheme.
Under the fifth grant, support will be tapered with the amount determined by how much turnover has been reduced in the year April 2020 to April 2021.
- Those who have experienced a decrease of 30% or more in turnover will receive a grant covering 80% of 3 months’ average trading profits, capped at £7,500.
- Those who have experienced a decrease in turnover of less than 30% will receive a grant of 30% of 3 months’ average trading profits, capped at £2,850.
Further information is available here.
Submitting a claim for the fifth grant
HMRC will shortly be in contact with all those who may be eligible for this grant and will tell them their personal claim date. Claims can then be made from that date up until the 30 September 2021. The fifth grant is expected to be the final one.
Claimants will need to work out their turnover from April 2020 to April 2021, as well as the turnover from either 2019-2020 or 2018-2019 to use as a reference year. HMRC has provided guidance on how to work out turnover, available here. Those who were newly self-employed in the 2019-2020 may be required to provide additional information to verify their claim.
A ‘how to’ video will also be available in late July on HMRC’s YouTube channel to give further guidance with the SEISS claim.
While we cannot give advice directly about the SEISS, if your income has been affected by Covid-19 and you want to find out more about what financial support you may be entitled to, contact our Family Benefits Advice Service for free, impartial and confidential advice on Freephone 0800 028 3008 or email email@example.com