Self-employment Income Support Scheme
The self-employment income support scheme (SEISS) will support individuals who are self-employed (including members of partnerships) whose income have been negatively impacted by COVID-19. This scheme will provide a grant worth up to 80% of their profits, up to a cap of £2,500 per month.
HMRC will be averaging profits from tax returns filed in 2016-17, 2017-18 and 2018-19 to calculate the taxpayers grant. The scheme will be open to those where over 50% of their income comes from self-employment and who have profits of less than £50,000.
Who is Eligible for Self-employed Income Support?
To be eligible for the scheme you must meet the following criteria:
- Be self-employed or a member of a partnership
- Have lost trading profits due to COVID-19
- Filed a tax return for 2018-19 as a member of a partnership or as self-employed. If you have not yet filed your 2018-19 tax return, you have 4 weeks from the date of the announcement to do so
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the 2020-21 tax ear
- Have trading profits of under £50,000
- Have self-employment income as at least 50% of your total income
If you commenced trading between 2016 and 2019, HMRC will only use those years for which you filed a Self-Assessment tax return.
How Much can I Claim Through the SEISS?
Once HMRC have calculated the average profits over the 3 years, the grant (up to a maximum of £2,500 per month for 3 months) will be paid directly into your bank account in one instalment.
HMRC will contact those who are eligible for this scheme and invite them to apply online. Please do not contact HMRC to apply as the scheme is currently in the process of being set up.
Once you’ve submitted a claim, HMRC will contact you to let you know how much you will receive and to request payment details.
If you claim tax credits, the grant income will need to be declared.
Protection from eviction for commercial tenants
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction.
These measures will mean no business will automatically forfeit their lease and be forced out of the premises if they miss a payment up until 30th June 2020. The Government may extend this period if needed.
This is not a rental holiday. All commercial tenants will still be liable for the rent.
We will endeavour to keep you updated as changes to this information are announced.
If you have any queries regarding this information, please do not hesitate to contact us. SAS is a full-service accountancy team in Colchester, Essex. If you need help making a claim, understanding what you are eligible for, or need a hand understanding the governmental Coronavirus support schemes, please give us a call!
