Blogs/Vlogs

How to apply for the Self-Employed Income Support Scheme (SEISS)

07 May 2020

In previous blogs and updates we have provided our summary of the Government’s support scheme geared to the self-employed, the Self-Employed Income Support Scheme (SEISS). The information and guidance available has now been updated, and in this blog we look at what you will need and how to apply.

The scheme aims to pay a grant to the self-employed (including members of partnerships) worth 80% of average trading profits. The grant will be paid as a single instalment, covering 3 months, and is capped at £7,500 in total.

Payment is not made automatically, meaning eligible individuals will need to apply for the grant through the Government Gateway, with the scheme accessible from 13 May 2020. This is a temporary scheme, but the Government have indicated that it may be extended, if necessary.

Who is eligible? 

HMRC’s guidance on SEISS can be found on their website, here but the key conditions include:

  • your trade has been adversely affected by COVID-19, eg. you cannot work due to shielding/self-isolation/caring responsibilities, or have had to scale down or temporarily stop trading
  • you submitted tax returns reporting trading income for 2016/17 to 2018/19 (or within that period)
  • your average annual self-employed/partnership profits were below £50,000
  • at least 50% of your taxable income came from self-employment/partnership income
  • you traded in the tax year 2019/20
  • you intend to continue to trade in the tax year 2020/21.

You can read more about the SEISS in our FAQs page, where we have summarised some of the key questions we are being asked by clients in relation to the scheme.

What do I need to do? 

HMRC have started to contact individuals who they believe may be eligible. They have also published an online tool to check eligibility, which you can access here: https://www.tax.service.gov.uk/self-employment-support

The service simply asks for your UTR (unique taxpayer reference – a 10 digit code found on your tax return) and NI number.

Using this information, you can determine whether the HMRC system currently believes you to be eligible. We have tried it on behalf of some clients and experienced mixed results as compared to expectation.

If you are eligible, you will be advised of the earliest date on which you can claim and you can enter contact details to be prompted by HMRC to do so.

Those who are not considered eligible can complete a request for re-assessment of their circumstances if they disagree.

Please note that agents (such as us!) cannot access the portal or make the claim on a client’s behalf. You will need to ensure that you have a Government Gateway ID in order to make your claim; if you do not already have an account you can create one here, or you can create one when you check your eligibility online.

Other important points to note 

Any income received through the grant will be subject to tax and NI so you will need to ensure that you keep records of any grant income, as this will need to be included on your relevant Tax Return.

Sadly, we are aware of SEISS related scams so please be vigilant. HMRC are contacting clients by email or text where they hold those contact details. However, those communications simply tell the taxpayer to get ready to claim - they do not include active links to click in order to make a claim.

If you have any queries or concerns in relation to applying for the SEISS or would like support and guidance with your application, please speak to your usual UHY contact or get in touch with us centrally through our Contact Us section.

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