Further help for the self-employed

Chancellor Rishi Sunak has extended support to the self-employed. ANEES HUSSAIN from our Tax Department explains exactly what you can expect.

If you're self-employed, the coronavirus crisis is likely to have proved particularly challenging. The good news is that the Chancellor of the Exchequer has recently announced an extension of the Self-Employment Income Support Scheme (SEISS). It aims to help individuals continue to trade in circumstances of reduced demand, by providing government grants.

Eligibility

All self-employed individuals and members of partnerships who meet the following criteria are eligible:

• You have submitted a Self-Assessment tax return for the tax year 2018-19. 
• You have traded in the tax year 2019-20 (6 April 2019 – 5 April 2020)
• You are trading when you apply (or would be, if it were not for COVID-19)
• You intend to continue to trade in the tax year 2020-21
• You have lost trading/partnership trading profits due to COVID-19

Your self-employed trading profits must also be less than £50,000 and more than half of your income must be from self-employment. This is determined by at least one of the following conditions being met:

• Having trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits making up more than half of your total taxable income
• Having average trading profits in 2016-17, 2017-18 and 2018-19 of less than £50,000 and these profits making up more than half your average taxable income for the same period

Even if you have not claimed the previous grant, you are able to claim on this occasion.

What is on offer?

The extension starts from November 2020 until April 2021. The grants will be paid in two lump sums, each covering three months. The first grant covering November until the end of January will be 20% of average monthly trading profits capped at £1,875. The second grant will cover February until April, but it is not known what percentage of profits the grant will pay out at this time. The government is set to review this.

It is also unclear how to apply for the scheme yet, but we'll keep you updated when more information is available. If you would like any support through any of the government schemes, contact us on 0115 955 5500 or email enquiries@pagekirk.co.uk