So far, in response to these unprecedented times caused by coronavirus, the Government’s Self-Employment Income Support Scheme (SEISS) has helped more than 2 million self-employed people in the United Kingdom. In Broxtowe alone 2,700 self-employed people have benefited from £8.1 million in support.
Nonetheless, I have had many self-employed constituents write to me for more detail about the SEISS and so I wrote to the Treasury for clarification. In their letter, the Treasury has confirmed the following:
- The SEISS is designed to help those adversely affected by COVID-19 and The Chancellor of the Exchequer announced an extension to the scheme on 29 May and so many eligible individuals may now qualify for a second and final grant.
- The SEISS opened for applications on 13 May and will remain open until 13 July.
- Self-employed individuals, including members of partnerships, are eligible if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.
- Individuals can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist. Around 95 per cent of those with more than half their income from self-employment in 2018-19 may be eligible for this scheme.
- Eligible individuals can at present claim a taxable grant worth 80 per cent 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. The money is paid into their bank accounts within six working days of completing a claim.
- The extension of the SEISS now means that eligible individuals whose businesses are adversely affected by COVID-19 will be able to claim a second and final grant when the scheme reopens for applications in August. This will be a taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and 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 coronavirus in this later phase.
More information about SEISS can be found here.
More information about financial support for business during COVID-19 can be found here.
If you want to read the letter in full and to read answers to frequently asked questions, download the document below.
