Self-Employment Income Support Scheme (SEISS) Grant Update

April 17th, 2020

HMRC has issued an update on just how it intends to calculate your eligibility for the Self-Employment Income Support Scheme (SEISS) grant.

Whilst the claim service is not yet available, HRMC aims to contact you by mid-May 2020 and make payment by early June 2020.

It will be available for three months but may be extended. The scheme will enable you to claim a taxable grant worth 80% of your trading profits, up to a maximum of £2,500 a month.

Remember, this a taxable grant and will be subject to Income Tax and National Insurance contributions but it won’t need to be repaid.

You can claim if you are self-employed or a member of a partnership, and you:

HMRC has set out how it will examine a person’s eligibility across a range of circumstances. The following link takes you directly to their update page so you can see how they might manage your situation directly. However, we have set out below an overview of how HMRC is addressing SEISS across various scenarios:

Trading results from your tax return:

Calculation is £60,000 + £60,000 less the £30,000 loss = £90,000

Average is arrived at by dividing £90,000 by 3 = £30,000 trading income

Are you eligible?

Your trading profits must be no more than £50,000 and represent more than half of your total income for either:

Aside from your trading income, your total income will include income from employment, property income, dividends, savings income, pension income and miscellaneous income (including social security income).

HMRC provide the following example:

  2016 to 2017 2017 to 2018 2018 to 2019 Average for the three tax years
Trading profit £50,000 £50,000 (£10,000) £30,000
Pension income £15,000 £15,000 £15,000 £15,000
Total income £65,000 £65,000 £5,000 £45,000
Trading profits are more than half of total income? Yes Yes No Yes

So even if you made a loss in the tax year 2018 to 2019, you would still be eligible for the grant because your average trading profit for the three tax years:

Whilst the start date for the scheme is a few weeks away and further guidance is likely to be released, if you have any queries in the mean time please contact your Champion advisor and we will try to help. 

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