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The SEISS will provide support to self-employed individuals including members of partnerships by way of a taxable grant worth 80% of trading profits up to a maximum of £7,500 in total for the initial period of 3 months from 1 March 2020.
The scheme has been extended for a further three months to 31 August for those people whose trade continues to be, or is newly, adversely affected by COVID-19. Eligible self-employed people will be able to claim a second and final SEISS grant in August. The taxable grant for this second period is 70% of trading profits for three months capped at £6,570 in total.
The grants must be claimed from HMRC through a simple online service. HMRC identify eligible taxpayers and contact them directly with guidance on how to make a claim.
HMRC contacted taxpayers eligible to make a claim for the first period in May and claims for the first SEISS grant must be made by no later than 13 July 2020.
HMRC have been at pains to point out that claims for SEISS grants can only be made by the eligible individual themselves. Any attempt to make the claim by a third party, including the claimant’s tax agent, accountant or financial adviser, will trigger a fraud alert and will result in significant delays to payment. WSM are however available to assist in the process of making a claim by ensuring claimants have the relevant information available.
The process and eligibility criteria for the second SEISS grant are expected to be similar to those for the first grant claim however further details on the second grant claim will be provided by HMRC on 12 June and we will update this guidance as soon as these details are available.
Following submission of a claim by the taxpayer, HMRC will contact the claimant to advise the amount of the payment and to confirm the payment details. Payments are made directly to the claimant’s bank account in one instalment – for the first grant payments are being made in June and for the second grant payments will be made in August.
The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.
Set out below are details of SEISS which have been announced to date and incorporate answers to queries we have received from clients including
Further updates to this article will be provided as and when further announcements are made however your queries are welcome and if we can provide an answer we will do so. Further information is also available from the government website via this link Self-employment Income Support Scheme.
Who is eligible to make a claim?
The scheme will be open to self-employed individuals or a member of a partnership:
It is not necessary for a claimant to cease trading or earning during the period of the claim to be eligible.
SEISS is not available to those who were not self-employed prior to 6 April 2019.
The £50,000 limit will be determined by reference either to:
It is only necessary to meet the limit for one of the above periods to be eligible for a claim.
HMRC will use data on the 2018-19 tax returns already submitted to identify those eligible and will review any late returns filed before the 23 April 2020 deadline in the usual way. Amendments to a submitted return made after 26 March 2020 will not be taken into account when working out eligibility for the grant.
There are specific rules for self-employed individuals who have received payment for work which is covered by the loan charge and for farmers making claims under averaging relief – details are on the GOV.UK website at this link.
The requirement for over half of total income to be obtained from self-employment will be assessed by reference to the same period for which the £50,000 limit is assessed. Total income is the sum of all the following for the relevant tax years:
Must a 2018-19 tax return have been submitted?
Yes. If a Self Assessment tax return was not submitted by 23 April 2020 there will be no eligibility for a claim.
Are there any other eligibility criteria?
Eligibility is also restricted to self-employed individuals or a member of a partnership who meet all the following criteria :
As noted above, it is not necessary for a claimant to cease trading or earning during the period of the claim to be eligible.
How much can I claim?
The 80% grant will be calculated by reference to the average trading profits for the tax years:
The average will be calculated by dividing the sum of the trading profits for the three years by 3.
Trading losses incurred in any of these tax years will be taken into account in assessing average trading profits. Losses which have been carried forward and offset against trading profits in subsequent tax years will not be included in the trading profits of those later tax years.
The amount of the claims will be based on tax returns already submitted and any amendments to a submitted return made after 26 March 2020 will not be taken into account.
For those who were not self-employed for all three years the average trading profits will be calculated on the continuous periods of self-employment in either the tax year 2017-18 and 2018-19 or the 2018-19 tax year only (even if there was self-employment in 2016-17).
The average trading profits will be divided by 12 to give a monthly amount and the grant will be 80% of this figure up to a maximum of £2,500 per month.
How do I make a claim?
Details of the claim process have not yet been provided however HMRC have advised no claim can be made until HMRC have made contact to confirm eligibility for SEISS.
HMRC are in fact already sending out emails to clients which sets out how to check your eligibility and how to make the claim. You will need to have your National Insurance number and Unique Tax Reference to do this. If HMRC confirm that you are eligible, you will need Government Gateway User ID and password. HMRC will then send another email to tell you when the claim is available for you to use which we believe will be a period in which to submit a claim of six days.
Appointed tax agents will not be able to access the SEISS portal to make grant claims on behalf of their clients but are able to offer advice and assistance throughout the process
If it is not possible for a claimant to access online services HMRC have advised an alternative way to claim will be available. No details of this alternative claim process have yet been provided.
When will the claim be paid?
HMRC will contact claimants following receipt of the claim and approval of the grant to advise the amount of the payment and the payment details.
Payments will be made by the beginning of June directly to the claimant’s bank account in one instalment.
Are there any other claims I can make?
Individuals trading through a limited company will not be eligible for SEISS however they may be eligible to make a claim under the Coronavirus Job Retention Scheme if the company operates PAYE scheme. Further details are available on our website or from the government website via this link Coronavirus Job Retention Scheme
You may be eligible for Universal Credit while you wait for the SEISS grant. Details of are available via this link on Universal Credit and claims can be made online at Universal Credit claim. Any SEISS grant received will be treated as part of self-employment income and may affect the amount of Universal Credit which can be claimed.
Additional help may be available from other business support schemes provided by the government including:
More details are available on our website or from the government website via this link Coronavirus business support schemes.
Amanda graduated from Brunel University, with a joint honours degree, achieving a BSC and BA degree in Leisure Management and Television and film studies. Amanda started her career in a customer service role before joining the hotel group Le Meridien as an Events coordinator, she was in the hotel industry for seven years and during her time won an award from a major international airline for her outstanding attitude and dedication to customer service, which she achieved while working for the Rezidor hotel group in the position of Airline Crew Manager. Amanda has over 20 years experience in customer relations and event management.
