The Self-Employment Income Support Scheme (SEISS) was introduced by the government in March to support those who are self-employed during the coronavirus pandemic. The deadline to apply for the first grant of the scheme is fast approaching, so if you are thinking of applying, now is the time to act before it’s too late.
When is the deadline to apply for SEISS?
The deadline to apply for the first grant is Monday 13th July 2020. This means you have just over one week to apply for the grant. The latest figures have revealed there have been over 2.6 million claims worth more than £7.7 billion, but there are many more who can apply who have not yet. HMRC state that once the application is completed, the payments will arrive in bank accounts within six working days, so once you apply, you can access the funds you need quickly.
What is the Self-Employment Income Support Scheme?
The Self-Employment Income Support Scheme (SEISS) provides successful claimants with a grant worth 80 percent of their average monthly trading profit over the last three years. The money is set to cover three months’ worth of profits, paid out in a single instalment, and is capped at £7,500. The grant does not need to be repaid but will be subject to Income Tax and National Insurance.
If you receive the grant, you can continue to work, start a new trade, or take on other employment.
You will be eligible for the SEISS grant if:
- You are self-employed or a partner in a trading partnership
- Your business has been adversely affected by the coronavirus pandemic
- You traded in 2018/19 and have traded in 2019/20
- You submitted your 2018/19 tax return on or before 23rd April 2020
- You are trading when you apply, or would have been if not for Covid-19
- You intend to continue to trade in 2020/21
- More than 50% of your total income is from self-employment
Your business could have been adversely affected by COVID-19 if, for example:
- You’re unable to work because you’re shielding, self-isolating, are on sick leave, or have to care for someone because of the coronavirus
- You’ve had to scale down, temporarily stop trading, or incurred additional costs because of the coronavirus pandemic
HMRC should have already contacted you if you are eligible to make a claim, and you can make your claim through the dedicated HMRC portal. To work out your eligibility, they will look at your 2018/19 Self-Assessment tax return, and your profits must be no more than £50,000 and at least equal to your non-trading income.
The second SEISS grant
On 29th May, Chancellor Rishi Sunak announced there would be an extension to the SEISS scheme, and a second grant will be available from August. This grant will be calculated at 70% of annual average profits and will be capped at £6,570 across the three months the grant is intended to cover. If you are eligible for the second grant, and your business has been adversely affected on or after 14th July 2020, you’ll be able to make a claim from 17 August 2020. You can make a claim for the second grant even if you did not make a claim for the first grant. Eligibility criteria will be the same for the second grant as it was for the first and how much you can claim for will be worked out in the same way.
Don’t miss out – apply for the SEISS now
The deadline to apply is fast approaching, and if you don’t want to miss out, now is the time to apply. If you believe you are eligible but have not been contacted by HMRC, Maple Accountancy can help. We can check your eligibility for you and help with your application. Contact us today on 01332 207336 or email@example.com.