Loading…
Close iconClose icon DarkLight mode

Find us quickly

130 Wood Street, London, EC2V 6DL
enquiries@buzzacott.co.uk    T +44 (0)20 7556 1200

Google map screengrab

Grant to support the self-employed (SEISS)

After much speculation and deliberation, the Chancellor finally announced the government measures to support the self-employed having already set out details of the support for furloughed employees. 

The government will provide a taxable grant to those who are self-employed in line with the payments provided for furloughed employees. It is expected to be available to 95% of those who are currently self-employed. 

The grant will be available for an initial three months, from 1 March, and will be based on the lower of:  

  • 80% of the average monthly profit based on a period of up to three financial years and; 
  • Capped at £2,500 per month 

Sole traders and partners will be eligible to receive a grant if they meet all the following qualifying criteria: 

  • Trading profits of no more than £50,000 for either 2018/19 alone or averaged over 2016/17, 2017/18 and 2018/19; 
  • Majority of income from self-employment; 
  • Tax return for the 2018/19 tax year filed with HMRC by 23 April with reported self-employment income; 
  • Currently trading; and 
  • Intending to continue to trade. 

HMRC will make direct contact with those who could qualify during the week commencing 4 May inviting them to make a claim from 13 May. There is also an online eligibility check which is now live on HMRC’s website for taxpayers.

Any payment will be made as a lump sum directly into the individual’s bank account and these will commence from 25 May.

The grant does not specifically help the self-employed who have commenced trade on or after 6 April 2019 and their only recourse to support will be universal credit.. While the level of the grant is the same as for employees, it fails to take into account the ongoing expenses the self-employed may be committed to, such as rent and insurance, which would not apply to employees.

The Chancellor also made it clear that a review will be carried out to rebalance the tax and national insurance contributions made by the self-employed compared to those employed. Could this be a revival of a policy to increase national insurance contributions by the self-employed which was previously announced and then withdrawn?   

 

This article was last updated on 4 May 2020.

Get in touch

If you have any questions or would like advice regarding the points raised in this article, complete the form below and one of our experts will be in touch. 

Close iconClose icon backback
Your search for "..."
did not yield any results.
... results for "..."
Search Tags