Remember to apply for the Self-Employment Income Support Scheme
How do I apply for SEISS?
If you're potentially eligible, HMRC should have contacted you already with a date you can apply from between the 13th and 18th May 2020. Do please note that the date you'll have been given is the earliest date you can apply from, not a deadline. So, if you haven't applied yet, you still can.
If you believe you're eligible but have not been contacted by HMRC, you can check your eligibility on the GOV.UK website. You'll need your Unique Taxpayer Reference (UTR), which can be found on any self-assessment correspondence from HMRC, and your National Insurance Number. If you fit the criteria to receive SEISS, it will let you know when you can make your claim from, and you will also have the opportunity to create a Government Gateway user ID and password if you don't already have one.
When you're able to make your claim, you will need:
- Your UTR
- Your National Insurance number
- Your Government Gateway user ID and password
- Your UK bank account details:
- Account number
- Sort code
- Name on the account
- Address linked to the account
You will also need to confirm to HMRC that your business has been adversely affected in some way by the pandemic.
How much will I receive?
When you apply, you will be told how much you will receive (if your application is successful). This will be a taxable grant based on your average trading profits over three years: 2016/17, 2017/18 and 2018/19. If you haven't worked all three of these years, don't worry, you can still apply as long as you have submitted a tax return for at least 2018/19. HMRC will work out all the numbers based on your tax returns.
The grant you receive will be 80% of your average trading profits for three months, capped at £7,500 and paid in one instalment. So, if your trading profits are worked out at £2,000 a month by HMRC, the total over three months would be £6,000. You would receive 80% of this, so you would receive a grant of £4,800. This is taxable and so will need to be declared on your 2020/21 tax return. The outcome of your application (and payment, if successful) should be received within six business days after submission.
Will the scheme be extended?
It's not yet clear if SEISS will be extended in line with the government's Coronavirus Job Retention Scheme (CJRS). If it is, it's not known if those eligible will need to re-apply or if payment will be made automatically to those who have already applied. We will be providing updates as more news comes out though so keep your eyes peeled.
What if I am not eligible?
If you are not eligible for SEISS because you have not been self-employed for long enough, you're the director of a limited company, or any other reason, there are other means of support open to you during the COVID-19 pandemic. Take a look at our blog to find out further details and, in the meantime, stay safe and well.