Self-Employment Income Support Scheme Grant Extension increased to 80% for freelancers and the self-employed.
The Self-Employment Income Support Scheme (SEISS) supports self-employed workers and individuals in partnerships whose business is suffering as a result of coronavirus.
Earlier schemes have been in place for much of the year, offering varying levels of support. The latest version, the SEISS Grant Extension, was first announced as part of the Chancellor’s Winter Economy Plan.
The level of support available has now been increased from the proposed 20%, to 80%, to support sole trader businesses during the second lockdown.
How much can I claim using the SEISS Extension grant?
The extension covers a six-month period, divided into two taxable grants. Only the first part of the grant has been confirmed so far.
The second part of the grant will be announced nearer the time, giving the government chance to assess the situation.
The first part of the SEISS Grant Extension
The second part of the SEISS Grant Extension
Paid in a single instalment.
Paid in a single instalment.
It will cover November, December, and January.
It will cover February, March, and April.
Eligible applicants to receive up to 80% of average monthly trading profits, for 3 months’ worth of profits.
The level of support has not yet been confirmed.
It is capped at £7,500 in total.
The support cap has not yet been confirmed.
Who is eligible to claim the SEISS Grant Extension?
The SEISS Grant Extension is to help self-employed workers experiencing less demand for work as a result of the COVID-19 pandemic.
The scheme allows self-employed workers, and individuals who are a partner in a partnership, to claim a taxable grant.
As with previous rounds of the scheme, HMRC are identifying eligible applicants and inviting them to submit a claim. But, if you think that you’re eligible and don’t hear from HMRC, check with them!
*click here for guidance on what counts as adversely affected
Average trading profits
The scheme is only available for businesses whose average yearly profits do not exceed £50,000.
The key word here is average.
Your trading profits might be more than £50,000 in one tax year, and at a loss the next, resulting in an average profit which is lower than the £50,000 threshold, making you eligible to apply.
Where your income comes from
Eligibility for the SEISS Grant Extension also considers how you earn your money. This is because the scheme is designed to provide support to those who rely on their self-employed income.
More than 50%, of your earnings must be from your self-employed work. Those who receive the majority of their earnings from regular employment will not be eligible.
You’ll also need to confirm that you have been adversely affected by coronavirus.
Has my business been adversely affected by coronavirus?
The grant is only available for those whose businesses are suffering as a result of coronavirus.
This largely refers to the way that COVID-19 is affecting your ability to work as you would normally expect to do so.
For instance, this might be because:
You’re shielding yourself or have caring responsibilities.
You have to scale down because staff are unable to work.
There’s less demand for your work because of social distancing rules and lockdown measures.
What happens to my SEISS claim if I’m in a partnership?
If your self-employed income comes from being in a partnership, you only need to use your share of the profits to calculate your SEISS claim.
Are directors eligible for the Self-Employment Income Support Scheme (SEISS)?
Unfortunately, directors of limited companies are not eligible to apply for a grant under the Self-Employment Income Support Scheme (SEISS).
A self-employed person or sole trader means someone who works for themselves in business. Directors are technically employees of their company which means they’re not able to claim SEISS. Find out what help is available for directors dealing with the impact of coronavirus.
HMRC sent me an invitation to apply for SEISS, but I don’t think I’m eligible
HMRC are inviting applicants to make a claim based on information from their 2018/19 tax return. If you don’t think that you are eligible but have received an invitation, double-check with them!
You should make sure that you have the Self Assessment service connected to that gateway account. If you don’t already have this bit set up, you’ll need to request an activation code from HMRC, which can take a few weeks.