The Self-Employment Income Support Scheme (SEISS) allows those who are self-employed to apply for a grant. This is if they believed that their business would be impacted by coronavirus. This Your-Benefits article will tell you everything you need to know.
What is the Self-Employment Income Support Scheme (SEISS)?
You may be able to earn a grant for being self-employed. One of these grants is the Self-Employment Income Support Scheme (SEISS). Indeed, you may be self-employed or in a partnership.
Furthermore, you may have been impacted by coronavirus. If this is the case, you could get this benefit.
Am I eligible for the Self-Employment Income Support Scheme (SEISS)?
There are 3 different stages that determine eligibility. First is stage 1. Indeed, this one looks at when you traded, as well as your trading status.
In order to be eligible for stage 1, you must first be either self-employed or part of a partnership. Then, you must have traded in 2 tax years. More specifically, in 2019-2020, and in 2020-2021.
Note that you may have traded through a limited company or grant. If this is the case, you are not eligible for this grant.
Then, there is stage 2. Indeed, this stage looks at your trading profits. Additionally, it looks at your tax returns. To be eligible, a couple of things need to apply to your situation. More specifically, the following:
- your total amount of trading profits are equal or superior to your non-trading income
- you have trading profits that are not superior to £50,000
- you submitted your tax return for 2019 to 2020 either on or prior to 2 March 2021
Lastly, stage 3 determines if you can submit a claim. Indeed, for this to be the case, a couple of things need to be true. Mainly:
- you will continue to trade in the 2021 to 2022 tax year
- you believe that your trading profits will take a hit
- this must be because of coronavirus, and in the period of 1 May 2021 to 30 September 2021
What circumstances will impact my claim?
Your trading profits for the 2019 to 2020 tax year may not make you eligible. Then, profits from previous years would be observed. Furthermore, you likely have already been contacted by HM Revenue and Customs if eligible. Indeed, this is because they would have done so if you qualify from your tax returns.
There are a number of circumstances that could affect your claim. Mainly, they are the following. You:
- chose the remittance basis, or are a non-resident
- are currently a military reservist
- currently receive averaging relief
- get loans
- the loan charge provisions must cover them
- gave birth to or adopted a new child
- belong to a partnership
- have your tax return under enquiry, amended, or you returned it late
You may claim Maternity Allowance. If this is the case, your eligibility for this grant will not be affected by these.
Can I claim the Self-Employment Income Support Scheme (SEISS)?
As said previously, this grant is not open to new application anymore. Indeed, the fifth version of this grant was closed to new application on 30 September 2021. Indeed, the information in this article will be for those who were able to apply in time.
The fifth version of the scheme could be claimed. Indeed, this is if you believe that your business will be affected by coronavirus, between the dates of 1 May 2021 and 30 September 2021.
You will need to make sure that you are indeed eligible when making your claim. HM Revenue and Customs will provide you with a personal claim date. Indeed, you will need to make your claim on or after this date.
How can I claim the SEISS?
As said previously, this grant is not open to new application. The following information will be for those who were able to apply on or before 30 September 2021.
In order to calculate what you could get, your business turnover will be looked at. Indeed, this is what will determine your grant amount. Additionally, turnover includes a number of things. This includes sales, fees, takings, and money received or earned by your business.
Two figures will be observed for this grant. Indeed, it will be the turnover for April 2020 to April 2021, and either 2018 to 2019 or 2019 to 2020.
You may have not traded in 2019 to 2020. If this the case, you may not have to give your turnover figures. However, this is the case if you then did not trade for the following tax years:
- 2016-2017
- 2017-2018
- 2018-2019
How much will the SEISS get me?
There are two different possibilities of how much you may receive. First, if you need to give your turnover figures for the grant, you may get one of two rates. Second, if you do not need to give your turnover figures, you will receive another rate.
If you need to give your turnover figures to HM Revenue and Customs, you may receive one of two rates. They are as follows:
| SEISS grant amount based on your business' turnover in 2022 | ||
|---|---|---|
| The percentage that your turnover decreased by | What you will receive | The maximum amount of grant you can get |
| Below 30% | 30% of your average trading profits for 3 months | £2,850 |
| 30% or above | 80% of your average trading profits for 3 months | £7,500 |
If you do not need to give your turnover figures to HM Revenue and Customs, the grant amount is different. Indeed, then, you would get 80% of 3 months’ average of your trading profits. The maximum you may earn is £7,500.
As of 30 September 2021, you may not submit a claim for this grant. Indeed, any text, emails or calls claiming to allow you to do so are likely to be scams.
