The Self Employed Income Support Scheme (SEISS) has opened this morning on schedule. The scheme is designed to match the support being given to furloughed employees.
Grants are paid to self employed individuals based on the average monthly profit over a period of up to 3 years. The amount will be 80% of the monthly profit. The maximum payment is £7,500.
If you were employed during any of the past 3 financial years (2016/17, 2017/18, 2028/19) and the self employed profit was less than 50% of your income during this time, you would be ineligible for the scheme.
You must have continued self employment and your business has continued (or plans to) trade during 2020/21
The scheme is run by HMRC on behalf of the Government, and if you have been contacted by them, or used the claiming check system earlier this month, you can now apply online if you were deemed to be eligible.
Yesterday (12 May) the Government announced that the employed scheme would continue until the end of October 2020 – as of yet, there has been no announcement of an extension to the SEISS scheme.
Tax and National Insurance
The SEISS Grant is ‘taxable’ and therefore will need to be declared on your 2020/21 Tax Return (the current financial year) which means that it will be subject to Tax and National Insurance, depending on your taxable profits at the end of the year.
Other sources of funding
If you’re ineligible for the SEISS scheme, you may be eligible for the Bounce Back Loan.