Q&A – Self-Employment Income Support Scheme

By April 8, 2020BLOG

Self Employment Income Support Scheme (SEISS) 

What is the Self Employment Income Support Scheme? 

The scheme allows for a taxable grant worth 80% of average monthly profits over the last 3 years up to £2,500 per month. 

Am I eligible for the scheme? 

Eligibility criteria: 

  • Be self‐employed or a member of a partnership and have been adversely financially affected by COVID 19 
  • Traded in 2019‐20 and currently trading at the point of the application or would be except for COVID 19. 
  • Intend to continue to trade in the tax year 2020‐21 
  • The scheme will be open to those with a trading profit of less than £50,000 in 2018‐ 19 or an average trading profit of less than £50,000 from 2016‐17, 2017‐18 and 2018‐19 
  • To qualify, more than half of their income in these periods must come from self‐ employment 
  • Self‐employed individuals who have submitted a tax return for 2019 

How can I apply for the scheme? 

Taxpayers should not contact HMRC instead wait until HMRC contact them. HMRC will use existing information to determine potential eligibility for the scheme and will contact eligible taxpayers when the scheme is operational. 

Date: 6th April 2020 

Time: 13:00 

When will I get the money? 

First payments under the scheme are expected to be paid by the beginning of June 2020 and will be paid in a single lump sum covering the period March 2020 to May 2020. 

Will I be eligible for the scheme if I continue working? 

Yes, self-employed individuals can claim the taxable grant and continue to do business. So those still earning some income but less than they would otherwise be earning, remain eligible. 

Are personal service companies eligible? 

No. The scheme only covers the self-employed and not individuals working through a limited company. 

Are company directors eligible? 

No. The scheme only covers the self-employed and not company directors working through a limited company. Directors who take a salary from their limited companies may be eligible for the Coronavirus Job Retention Scheme. 

I have started being self-employed after 6 April 2019 – am I eligible? 

If you started self-employment on or after 6 April 2019 then no you are not eligible and cannot claim under the scheme. 

I have been self-employed for less than three years – am I eligible? 

Yes, were a self‐employed individual has been trading for less than 3 years the scheme will take into account the available trading period given that the self‐employed individual was trading in the tax year 2018‐19 and submitted a tax return. 

My average trading income in the last 3 years is under £50,000, however, I continue doing business and have not lost trading profits due to COVID‐19 – am I eligible? 

No. Profits must have been negatively affected by COVID‐19 to be eligible under the scheme. 

My average profits are £50,001 – am I eligible? 

No. if profits are over £50,000 on average you will not be eligible. 

I have income under both PAYE and self-employment – am I eligible? 

To qualify for the scheme more than half of your income in these periods must be from self-employment

 

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