Good news at last! If you’re self-employed, you can now apply for a grant from the UK government. Keep reading to find out everything you need to know about the Self-Employment Income Support Scheme (SEISS), including how to submit your application and how to find out if you’re actually eligible for the grant.
SEISS is a grant that allows self-employed individuals to claim 80% of their average monthly trading profits. The grant will be taxable (with Income Tax and self-employed National Insurance) and will be paid to your bank account in one instalment. The payment should cover you for 3 months, and the maximum you can claim is capped at £7,500.
The HMRC website says that you’re eligible for the scheme if you’re either:
If you’re a limited company or operating a trade through a trust, you unfortunately can’t claim for a grant through SEISS.
Now you’ve confirmed you’re eligible to apply, here’s what you’ll ended to have to hand for the application:
Now you’re ready to make a claim! To successfully apply for the SEISS, you need to make the claim yourself, meaning that accountants - like us here at Mazuma - and advisers aren’t able to submit for you.
Once you’ve submitted your claim, HMRC will check the application and - providing everything is tickety-boo - they’ll pay your grant in the next 6 working days. You should get an email from them when payment is on the way, so keep an eye on your inbox!
HMRC uses the information submitted on your Self Assessment tax returns to calculate how much you should get. This will be based on your average trading profit over 3 tax years, adding together your total trading profits or losses for the 3 tax years and dividing that by 3.
The grant will be 80% of your average monthly trading profits. The online service will give you a detailed breakdown of how the final amount was calculated so you can see for yourself how they arrived at the final amount.
If you think HMRC has incorrectly calculated the amount, you should check this with a reliable accountant - like Mazuma! If you’ve reviewed the amount and you’re still certain it’s wrong, you can ask HMRC to review your grant amount.
The money is finally in your account - hooray! Now, you must keep a copy of all records relating to the grant. More information on the exact records can be found here: self-employment record keeping requirements.
Yes! If you receive the grant you can continue to work, start a new trade or take on other employment if you want to.
HMRC states that your business has been significantly impacted by coronavirus if you are unable to work due to:
We know, it’s a lot to take in. Although we can’t submit the application for you, we can help you prepare your application and be on hand to answer any questions you have throughout the process. Not to mention, we also provide a low-cost monthly accountancy service which you can sign up for - give yourself a break from the stress of accounts and let us take a weight off your shoulders! Get in touch with our team today for a free quote - we’d love to hear from you.
Take 30 seconds to get a quote and see how we can help you.