The Self-Employment Income Support Scheme (SEISS) was officially opened for applications at 8 am on 13 May 2020. The scheme is yet another in a series of schemes released by Exchequer Chancellor Rishi Sunak in the last few months to assist businesses and individuals adversely affected by the COVID-19 pandemic and the ensuing UK lockdown.
The SEISS is mainly aimed at self-employed individuals and offers up to 80% of your average monthly trading profits. The compensation is set at £ 7,500 and cannot be charged for more than six working days after the claim. The scheme will be valid initially for three months.
The scheme will be valid for three months initially.
The grant is taxable and will be subject to National Insurance income tax and self-employed. In your 2021 tax return, you will need to mention it as earnings. We're going to show you exactly how to apply for this grant in this article.
Who could argue?
If you are self-employed or in a partnership and have lost income as a result of COVID-19, you would be entitled to claim the award. Study the government's Eligibility Checker to find out if you are eligible to claim for the SEISS.
Gov.Uk official advice
If you are registered, an invitation to claim will be received. If this invitation has not been sent, you can still visit the Eligibility Checker and enter your information to check if you are eligible. Important: You will be given a clear claim window if you are eligible. Before this window opens, you will not be able to put your claim on a date.
Important: A key factor in the eligibility of this claim is that the coronavirus has indeed adversely affected the business. If this point needs to be proven at some later stage, you must have and keep reliable records of this truth.
Where to argue?
You will then be shown a screen with prepopulated figures for what you have been approved for. These figures are based on your recent tax returns, and what you qualify for depends on what you have collected over the past three fiscal years. There will be a description on the tab which explains how the figure was reached. The page is downloadable if you want to review it directly or send it to your London accountants or tax advisor to revise it for you. HMRC advises that you continue individually and then contact them to have the amount reviewed at a later date if you think the amount is incorrect.
You will then be asked to pick the payment from either a personal or business bank account. The bank account must be UK-based and must be capable of accepting transactions from BACS. You will be asked to confirm the bank's address after filling in the banking information. If you type in the bank's postal code, there is an address finder that will help you find the address of the bank.
You will be asked to check all the details before submission. Finally, you must accept the paragraph at the end that states that your organisation has been adversely affected by the coronavirus that your application is in accordance with the HMRC guidelines, and other points as shown in the screenshot below. The confirmation screen showing how much was awarded and giving you a reference number should be given if all is in order. Make sure that this screen is printed out for your records, or take a screenshot and save it.
Within six working days of the submission of the claim, the balance will be paid. If after six working days you have not received the invoice, and it is after 25 May 2020, give HMRC a call to inquire. When doing so, make sure to have your reference number handy.
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