SEISS warning: Deadline for claims falls next week – act now before higher grants are gone

SEISS (the Self-Employment Income Support Scheme) can provide eligible claimants with a taxable grant to help them through the coronavirus pandemic. Under the current rules, a claimant could receive a grant worth 80 percent of their average monthly trading profits, paid out in a single instalment.


  • Universal Credit for the self-employed – how SEISS impacts payments

The grant itself will be capped at £7,500 in total.

This figure is important to note because while the scheme has been extended recently, it will soon provide less generous support overall.

If a claimant is still eligible, they’ll be able to claim a second and final grant in August.

This final grant will cover 70 percent of average trading profits, with the cap being reduced to £6,570.

It’s possible that some self-employed workers may not have needed a grant at all when the scheme was launched but may do now as their business eventually took a hit.

If this is the case, they’ll need to act fast as the deadline for applying for the first wave of grants falls next week.

Claims for a first grant must be made on or before July 13, which is a mere week away.

In order to be eligible for a grant, a person must have hit certain criteria set by the state.

SEISS flexibility: Self-employed parents given extra support [INSIGHT]
SEISS problems highlighted by Treasury report: ‘This cannot be right’ [WARNING]
SEISS: Some may be ‘outraged’ with extension decision rules

To receive a grant, a person must be self-employed or a member of a partnership and have the following apply:

  • They traded in the tax year 2018 to 2019 and submitted a Self-Assessment tax return on or before April 23 2020 for that year
  • They traded in the tax year 2019 to 2020
  • They intend to continue to trade in the tax year 2020 to 2021
  • They carry a trade which has been adversely affected by coronavirus


  • Self Employment Grant: Are you one of one million eligible for SEISS?

That last point can be viewed as being quite broad in nature but the government provides some examples of what it could include.

A business could have been adversely affected by coronavirus if the person running it has had to shield or self-isolate due to the disease.

Also, operationally, a business could also have been affected if supply chains had been interrupted or if customer numbers dropped.

A grant cannot be claimed if the applicant is operating a trade through a trust or is registered as a limited company.

Even when a person is eligible for the grant, they need to be careful when putting the claim through.

The self-employed individual needs to make the claim themselves as if they use a tax agent or advisor, it could trigger a fraud alert.

Also, the government warns that if a person receives texts, calls or emails claiming to be from HMRC offering financial or tax advice it will be a scam.

This also applies to any dubious characters offering help with a second grant as the online service for second claims is not yet available.

Source: Read Full Article