Following the Government statement on Friday 29 May, the Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months.

If you want to know more detail about the Scheme, follow this link: Check if you can claim a grant through the Self-Employment Income Support Scheme

 

  1. Introduction
  • The Self-Employment Income Support Scheme (SEISS) has been extended – with those eligible able to claim a second and final grant capped at £6,570;
  • The grant will be worth 70% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits;
  • If you have yet to claim under the SEISS then you have to until 13 July.
  • Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
  • Those eligible have the money paid into their bank account within six working days of completing a claim.
  • The grant is taxable upon your 20/21 tax return;
  • Unlike the employee scheme, the self-employed can continue to work as they receive support;

 

  1. When Will The Support Be Available?
  • Those eligible under the Self-Employment Income Support Scheme (SEISS) will be able to claim a second and final grant in August;
  • Applications for the second grant will open in August;

 

  1. How Much Will I Get?
  • Individuals will be able to claim a second taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total;
  • HMRC has confirmed the same eligibility criteria will be used to establish self-employed individuals’ entitlement.

 

  1. Am I Eligible?
  • The eligibility criteria remain the same, with individuals needing to be able to confirm that their business has been adversely affected by coronavirus.
  • An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.;
  • Further guidance on the second grant will be published on Friday 12 June
  • You are eligible for the Scheme if:
  • submitted your Income Tax Self-Assessment tax return for the tax year 2018-19;
  • continued to trade in 2019-20 and intend to keep trading in 2020-21;
  • carry on a trade which has been adversely affected by COVID-19;
  • have average self-employed trading profits of no more than £50,000 and at least equal to your non-trading income

Barrons has put together a helpful guide to running your business during the coronavirus crisis.