The Chancellor has confirmed the extension of the Self-Employment Income Support Scheme (SEISS), with the announcement of a second and final grant to support the income of self-employed individuals during the Coronavirus outbreak.
The first and current round of grants under the scheme allows self-employed individuals to claim a taxable grant worth 80 per cent of three months’ average monthly trading profits, capped at a total of £7,500 and paid in a single instalment. This round will close on 13 July 2020.
Claims for the second grant will be available in August 2020. The amount paid is to be reduced to 70 per cent of three months’ average trading profits and will be capped at £6,570 in total. As per the first round, the grant will be paid in a single instalment.
Individuals do not need to have claimed the first grant to be able to claim the second.
Unlike the Coronavirus Job Retention Scheme (CJRS) for employees, self-employed individuals may continue working, begin a new trade or start a new employment whilst in receipt of a grant.
The full criteria for qualification for the scheme remain unchanged. Applicants must:
- Be self-employed or a partner in a partnership;
- Have lost trading/partnership trading profits due to COVID-19;
- Filed a tax return for 2018-19, by March 2020, that includes either self-employed or trading partnership profits;
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the tax year 2020 to 2021; and
- Had trading profits of less than £50,000, that makes up more than half of their total taxable income in 2018/19
The scheme is not available to people working through their own limited companies.
Further details about how to apply for the second and final grant will be announced on 12 June 2020.