• Jane Wu LLB ACA

Self Employment Income Support Scheme (SEISS)

Updated: Sep 29, 2020

Applications are now open for the second grant

The Self-Employed Income Support Scheme is a government grant aimed at helping self-employed businesses which have been adversely impacted by #coronavirus.

The first grant is now closed. But second grant applications can be made up to and including 19th October 2020.

The second grant

  • A grant of the lower of 70% of an average of three months trading profits up to a maximum of £6,570. You don't have to repay it.

  • The grant is subject to income tax and national insurance

Who is eligible?

  • Anyone who is self-employed or a member of a partnership; and

  • Have traded in tax year 19/20

  • Are trading when you apply (or would be except for coronavirus)

  • Intend to continue to trade in the tax year 20/21 (except where coronavirus has prevented this), and

  • the trade has been adversely affected by coronavirus on or after 14th July 2020

You are NOT ELIGIBLE if your trading profits are more than £50,000 and less than half your total income for either:

  • tax year 18/19; or

  • the average of tax years 16/17, 17/18 and 18/19

  • Nor are you eligible if you have not submitted your tax return for 18/19.

What does 'adversely affected' mean?

It could be that you have experienced lower income or higher costs than normal in your business. There is no minimum threshold over which your business’ income or costs need to have changed. You should however keep records so that you can demonstrate the adverse effect. HMRC give a some examples of ways in which your business might be negatively affected:

you’re unable to work because you:

  • are shielding

  • are self-isolating

  • are on sick leave because of coronavirus

  • have caring responsibilities because of coronavirus

you’ve had to scale down, temporarily stop trading or incurred additional costs because:

  • your supply chain has been interrupted

  • you have fewer or no customers or clients

  • your staff are unable to come in to work

  • one or more of your contracts have been cancelled

  • you had to buy protective equipment so you could trade following social distancing rules

How do I get apply?

  • Log into your government gateway account to complete the application process. Your Accountant will not be able to do this on your behalf.

  • You will need your Government Gateway credentials (user ID and password) and you should check that your bank and contact details are up to date.

  • If you are not sure about your Government Gateway credentials please use the SEISS eligibility checker to get them - you can do this now.

How will HMRC check eligibility?

HMRC will calculate your total income by adding together your:

  • Income from earnings

  • Trading profits

  • Property income

  • Dividends

  • Savings income

  • Pension income

  • Miscellaneous income (including social security income)

You trading profits must be more than half your total income for:

  • Tax year 18/19; or

  • The average of tax years 16/17, 17/18 and 18/19

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