Like the CJRS scheme for employers the Self-Employed Income Support Scheme (SEISS) has been extended to September 2021and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021. There will then be a fifth grant covering May to September 2021.
The fourth taxable grant will cover 80% of average trading profits, capped at £7,500. The fourth grant will take into account 2019 and 2020 tax returns and will be open to those who became self-employed in the tax year 2019/2020. Eligibility for the scheme will be based on the tax return submitted for 2019/2020 which must have been submitted by 2 March 2021.
The third grant for SEISS is now open. To make a claim for the grant, your business must have been impacted by coronavirus on or after 1 November 2020. You can make a claim for the third grant if you are eligible, even if you did not make a claim for the first or second.
Businesses eligible for the first Self Employment grant must make their claim by Monday 13th July 2020. At the end of May the government announced that the scheme would be extended, with a second and final payment being made in August 2020.
Chancellor Rishi Sunak announced on 12 May that the CJRS scheme will be extended until the end of October. The scheme will continue in its current form until the end of July with the Government paying 80% of employees wages up to £2,500 a month. For account purposes the amounts received should be credited to a “grants received” account, and this will therefore increase taxable profits of the business.
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. You will get a taxable grant based on your average trading profit over the 3 tax years:
HMRC have issued some more details relating to the claims for the Self-Employed Income Support. The latest guidance was issued by HMRC on 1 May and information around this can be found here. As with many HMRC “guidance notes” issued recently, these tend to be quite basic, and, unfortunately, leave many questions unanswered.
You can claim if you are a self-employed individual or a member of a partnership and you carry on a trade which has been adversely affected by coronavirus; you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year and you traded in the tax year 2019 to 2020
you intend to continue to trade in the tax year 2020 to 2021
In outline the Self-Employed Income Support Scheme allows the self-employed to claim 80% of their average profits for the period up to 2018/19 limited to £2,500 a month, initially for a three-month period.
The Government has stepped in to provide support to certain areas of the economy but even with this becoming available in the coming weeks, some
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