SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months (1st March 2020 - 31st May 2020). This may be extended if needed.
WHO CAN APPLY?
Self employed individual or a member of a partnership
Have submitted your 2018/19 Self Assessment Tax Return
Traded in the tax year 2019/20
Are trading when you apply (or would be except for COVID-19)
Intend to continue to trade in the tax year 2020/21
Have lost trading/partnership income due to COVID-19
Have trading profits less than £50,000
HOW MUCH WILL YOU GET?
80% of the monthly average profits from the 2016/17, 2017/18 and 2018/19 tax years.
It will be up to a maximum of £2,500 per month for 3 months.
HOW TO APPLY?
HMRC have released an eligibility checker which can be found here. If you enter your details it will give you a date and time you can make a claim. Your tax agent or adviser cannot make the claim for you. You must make the claim yourself.
You will be able to apply through your HMRC online account after your allocated date/time where it will confirm your eligibility.
Before you continue with your claim you will need to confirm that you:
Traded during the 2019/20 tax year as self-employed or a partner in a partnership; and
Are planning to continue to trade during the 2020/21 as self-employed or a partner in a partnership; and
Your business has been adversely affected by the coronavirus outbreak. (Note: Adversely affected includes not being able to work because you have caring responsibilities, you are self-isolating or your trade has reduced because, for example, you are unable to open your premises, see customers, or obtain stock etc.)
TOP TIP: It is important that you keep records of why you have been eligible to claim the SEISS grant. Make a note of why your trade has declined during the coronavirus outbreak as HMRC will check your grant claim later (after you have received it).
WHEN WILL IT BE PAID?
It is expected to be paid directly into your bank account in one lump payment within 6 working days of the claim being made.
HOW DO YOU ACCOUNT FOR THE GRANT?
The SEISS grant is taxable and subject to Class 4 National Insurance so will need to be included in your Self Assessment tax return. Depending on which accounting basis you use (cash basis or the accruals basis) and your accounting year-end, the grant may need to be apportioned between your 2019/20 and 2020/21 tax returns.
Further information can be found on the HMRC website here.
If you have any questions or would like to find out more please feel free to contact us.