The UK has millions of self-employed business owners and entrepreneurs, a lot of those people have slipped through the gap when it comes to support during Pandemic.
(In this video I summarise the Self Employment Income Support Scheme (SEISS) )
Sadly a lot of self-employed have had to rely on universal credit to plug the gap in their lost earnings.
This years budget sees the launch of Self Employment Income Support Scheme (SEISS)
What is the Self Employment Income Support Scheme?
SEISS is a government scheme that supports the UK’s self employed with grant when they prove their business has been impacted by Covid. To date there have been 3 rounds of payments the last recently ended on 29th January.
In the March budget of 2021 Rishi Sunak announced there will be two further payments effectively a fourth and fifth round of payments.
Can I claim the Self Employment Income Support Scheme?
If you “reasonably believe” your business has suffered due to the pandemic and your profits are down then you can claim. I would imagine that impacts most self employed people due to the various lockdowns etc.
The Self Employment Income Support Scheme is separate from any previous grants or loans you might have had over the last 12 months.
Some good news here is, if you have previously been ineligible for previous schemes you are not ruled out of this. Previously if you were ineligible for any of the previous rounds it would rule you out of the others.
To claim you must be self employed or part of a partnership, unfortunately as previously if you trade through a limited company you are not eligible.
Your business must have been trading in 2018-2019 and the tax return self assessment submitted for that period. You must also have traded during the year of 2019-2020, so if you shut your company down you wont be eligible.
You Must Continue Trading.
The goal of these grants is to keep businesses trading, you will be asked to declare that you will continue trading. On top of that you must declare your business will have a significant reduction in profits this year.
Phase 4 is for businesses who have been hit between 1st April 2021 and 29th April 2021. Phase 5 will run until the end of July.
Phase 4 will give grants of up to 80% of your average monthly profit, the maximum payment will be £7500. This is subject to proving your income for that period has dropped by at least 30%.
Those with profits that have dropped less than 30% will be able to get a grant covering up to 30% of your average monthly profit.
How to make a claim under SEISS
You need your UTR number Unique Taxpayer Reference, if you dont have that ask your accountant. Your national insurance number and the user you use for the Government Gateway along with its ID and password.
Lastly you need your Bank details so they can pay you.
How do they work out the amount you can get.
Once you apply they will look at the average profit you made over 12 months and divide that by 12. That will give them your average monthly profit which they will times by 3. Once they have the figure they will give you 80% of the figure to a maximum of £7500.