Update: 5 November 2020
UK Government have announced the SEISS Grant Extension will be increased from 55% to 80% of three months' average trading profits, capped at £7,500 for the three month period at the start of November until the end of January.
UK Government intend to set out details of the fourth SEISS Grant covering February to April 2021 in due course.
SEISS Grant Extension updated 1 November 2020
The generosity of the SEISS Grant Extension will be increased from 40% of average trading profits to 55%. The opening of the service has been brought forward to 30 November, from 14 December.
SEISS Grant Extensions provide support to the self-employed via two grants, each available for three month periods covering November to January and February to April. The first grant will cover a three month period from the start of November until the end of January where the UK Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering three months' profits, capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November. This therefore increases the total level of grant from 40% to 55% of trading profits for November to January.
The second grant will cover a three-month period from the start of February until the end of April. The UK Government will review the level of the second grant and set this in due course.
The grants are taxable income and subject to National insurance contributions.
Who is eligible?
To be eligible for the scheme, self-employed individuals (including members of a partnership) must:
SEISS Grant Extension updated 22 October 2020
On 22 October 2020, HM Government announced that support for the self-employed would be brought in line with the expansion of the Job Support Scheme (JSS Open). The value of the first SEISS Grant Extension, covering the period November 2020 to the end of January 2021, will be based on 40% of three months' average trading profits, paid out in a single instalment and capped at £3,750 in total. SEISS Grant Extension will be available to self-employed individuals who temporarily cannot trade as well as those continuing to trade and facing reduced demand due to COVID-19.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in mid-November 2020.
SEISS updated 30 July 2020
On 29 May 2020 (& updated 12 June 2020), HM Government announced an extension to the Self-employment Income Support Scheme (SEISS) here.
Applications for the second SEISS grant will open on 17 August 2020.
Summary
For those eligible, the second and final grant will be a taxable grant worth 70% of average monthly trading profits, paid out in a single instalment covering a further 3 months’ period worth of profits, and the maximum amount will be capped at £6,570 in total.
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.
Applications will open for the extended scheme in August 2020 at which point the online service for the second and final grant is expected to go live.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
Further details on who can claim can be found here.
Eligibility for SEISS
The government has not moved to extend the scheme to those who were not eligible for the first payment, for example those who started self-employment since April 2019.
Those claiming both the first and the second grant have to confirm that they meet the eligibility criteria.
The eligibility criteria are the same for both grants, in particular individuals will need to confirm that their business has been adversely affected by coronavirus on or after 14 July 2020. HMRC’s guidance indicates that this includes being unable to work because the taxpayer is shielding, self-isolating or is on sick leave or has care responsibilities because of coronavirus. It also includes scaling down or temporarily stopping trading because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work.
If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.
Reminder: 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.
As originally reported (the first SEISS grant):
The scheme will provide taxable grants to self-employed individuals or partners negatively impacted by the coronavirus, worth 80% of their average trading profits for three months, capped at £2,500 per month.
The number of months covered by a SEISS grant may be extended beyond three months if the coronavirus shutdown continues beyond the end of June 2020.
A SEISS grant is based, for each taxpayer, on the average of their trading profits as reported in their last three tax returns for the tax years: 2015/16 to 2018/19. If the taxpayer started trading within this three year period the monthly average of profits will be calculated from the periods in which they were trading.
The SEISS grant will not be payable to anyone who meets any of these conditions:
Those who started trading after 6 April 2019 are not eligible for the SEISS grant. This date is the 'line in the sand' for eligibility purposes.
Landlords will not qualify for the SEISS grant as property letting businesses are not regarded as a trade. Similarly, HMRC are unlikely to consider income from furnished holiday lets as qualifying for the SEISS grant.
How do I apply?: HMRC will contact those taxpayers who are eligible for this grant and will invite them to apply for the payment online. The SEISS grant will be payable into the taxpayer's bank account in one lump sum and the money is not expected to be available until early June 2020.
The grant will be treatable as taxable income and will have to be reported on tax returns for 2020/21.
Find out more and here.
UK Government have announced the SEISS Grant Extension will be increased from 55% to 80% of three months' average trading profits, capped at £7,500 for the three month period at the start of November until the end of January.
UK Government intend to set out details of the fourth SEISS Grant covering February to April 2021 in due course.
SEISS Grant Extension updated 1 November 2020
The generosity of the SEISS Grant Extension will be increased from 40% of average trading profits to 55%. The opening of the service has been brought forward to 30 November, from 14 December.
SEISS Grant Extensions provide support to the self-employed via two grants, each available for three month periods covering November to January and February to April. The first grant will cover a three month period from the start of November until the end of January where the UK Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering three months' profits, capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November. This therefore increases the total level of grant from 40% to 55% of trading profits for November to January.
The second grant will cover a three-month period from the start of February until the end of April. The UK Government will review the level of the second grant and set this in due course.
The grants are taxable income and subject to National insurance contributions.
Who is eligible?
To be eligible for the scheme, self-employed individuals (including members of a partnership) must:
- have been previously eligible for the SEISS first and second grant (although they do not have to have claimed the previous grants);
- intend to continue to trade, and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus;
- were previously trading but are temporarily unable to do so due to coronavirus.
SEISS Grant Extension updated 22 October 2020
On 22 October 2020, HM Government announced that support for the self-employed would be brought in line with the expansion of the Job Support Scheme (JSS Open). The value of the first SEISS Grant Extension, covering the period November 2020 to the end of January 2021, will be based on 40% of three months' average trading profits, paid out in a single instalment and capped at £3,750 in total. SEISS Grant Extension will be available to self-employed individuals who temporarily cannot trade as well as those continuing to trade and facing reduced demand due to COVID-19.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in mid-November 2020.
SEISS updated 30 July 2020
On 29 May 2020 (& updated 12 June 2020), HM Government announced an extension to the Self-employment Income Support Scheme (SEISS) here.
Applications for the second SEISS grant will open on 17 August 2020.
Summary
For those eligible, the second and final grant will be a taxable grant worth 70% of average monthly trading profits, paid out in a single instalment covering a further 3 months’ period worth of profits, and the maximum amount will be capped at £6,570 in total.
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.
Applications will open for the extended scheme in August 2020 at which point the online service for the second and final grant is expected to go live.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
Further details on who can claim can be found here.
Eligibility for SEISS
The government has not moved to extend the scheme to those who were not eligible for the first payment, for example those who started self-employment since April 2019.
Those claiming both the first and the second grant have to confirm that they meet the eligibility criteria.
The eligibility criteria are the same for both grants, in particular individuals will need to confirm that their business has been adversely affected by coronavirus on or after 14 July 2020. HMRC’s guidance indicates that this includes being unable to work because the taxpayer is shielding, self-isolating or is on sick leave or has care responsibilities because of coronavirus. It also includes scaling down or temporarily stopping trading because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work.
If you’re eligible and want to claim the first grant you must make your claim on or before 13 July 2020.
Reminder: 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.
As originally reported (the first SEISS grant):
The scheme will provide taxable grants to self-employed individuals or partners negatively impacted by the coronavirus, worth 80% of their average trading profits for three months, capped at £2,500 per month.
The number of months covered by a SEISS grant may be extended beyond three months if the coronavirus shutdown continues beyond the end of June 2020.
A SEISS grant is based, for each taxpayer, on the average of their trading profits as reported in their last three tax returns for the tax years: 2015/16 to 2018/19. If the taxpayer started trading within this three year period the monthly average of profits will be calculated from the periods in which they were trading.
The SEISS grant will not be payable to anyone who meets any of these conditions:
- has average annual profits of £50,000 or more
- has not submitted a tax return for 2018/19 (in order to qualify for the grant, the deadline for submission of 2018/19 tax return is 23 April 2020)
- receive less than half of their annual taxable income from self-employed profits
- has already ceased trading permanently
Those who started trading after 6 April 2019 are not eligible for the SEISS grant. This date is the 'line in the sand' for eligibility purposes.
Landlords will not qualify for the SEISS grant as property letting businesses are not regarded as a trade. Similarly, HMRC are unlikely to consider income from furnished holiday lets as qualifying for the SEISS grant.
How do I apply?: HMRC will contact those taxpayers who are eligible for this grant and will invite them to apply for the payment online. The SEISS grant will be payable into the taxpayer's bank account in one lump sum and the money is not expected to be available until early June 2020.
The grant will be treatable as taxable income and will have to be reported on tax returns for 2020/21.
Find out more and here.
