SEISS Grant (Self-Employment Income Support Scheme) is a temporary scheme. This is offered by the Government to survive coronavirus pandemics and help self-employed people. Initially, it was designed just for three months to make self-employed people survive through the pandemic. However, later the lump sum payment provided to the affected people was increased as well.
Before we delve deep into details, let’s see what this blog will unfold for your quest for knowledge. In today’s blog, we intend to cover:
- What Is SEISS Grant?
- How Do I Qualify For SEISS?
- What If I Carry On Working If I Get SEISS Grant?
Get In Touch with our consultants at Accotax to manage your finances to get you to qualify for SEISS Grant!
What Is SEISS Grant?
It would not be wrong if we associate the Self-employment Income Support Scheme with a self-employed version of the furlough scheme. It is a kind of grant that you are not required to pay back in any case. However, you have to pay national insurance and income tax on any amount that you receive through SEISS Grant.
For each payment you receive, the amount can vary under this scheme.
- 80% of average monthly profits are covered for three months under the first SEISS Grant. This is up to 7500 pounds.
- 70% of average monthly profits are covered for three months under the second grant. This is up to 6570 pounds.
- Third, fourth, fifth, and final grants again cover 80% of the monthly profit.
However, there are certain limitations for each of them which are explained below.
- The fourth grant covers from February to April 2021 and applications were closed on 1st June 2021.
- The fifth and final grant covers from May to September. It will only cover 80% when the turnover has fallen more than 30%.
How Do I Qualify For Self-employment Income Support Scheme?
If you work as a sole trader, HMRC will look into your profits. Your losses that are brought forward from any previous years will be added as well. However, HMRC will again calculate your profits if you are in a partnership business after adjusting your partner’s percentage.
Further when we talk about the eligibility criteria, in the case of the fifth grant you have to be low on demand of your business due to COVID – 19, or you are unable to trade due to complex circumstances of coronavirus.
To enjoy other SEISS Grant, you need to meet the following conditions.
- Trading profits must no cross 50,000 pounds. However, minimum it must be equal to non-trading income.
- You must intend to continue trade in 2021-2022.
- You expect a significant reduction in trading profits from May till September 2021.
- Your trading history from 2019-20 is there and the returns are paid before 2nd March 2021.
Moreover, you must have a reasonable belief in significant profit reduction. By reasonable belief, we mean that you will suffer in terms of profits due to the circumstances created in times of Coronavirus. To support your claim, you must have your records prepared.
While providing this information the Government of UK mentions the examples of the gyms. Due to coronavirus, the profits of the gym owner will be clearly reduced. She can prepare the records and claim for the grants.
Once you are good to apply for SEISS Grant, you need to have the following in hand for seamless processing.
- Government Gateway User ID and password
- National insurance number
- Self-assessment UTR
- Pandemic and reference turnover
- Bank account number
For seamless processing, speak to our consultants at Accotax and forget to worry.
What If I Carry On Working If I Get SEISS Grant?
The SEISS is unlike in terms of allowing self-employed people to carry on working. Even it is allowed that you can start a new trading business. You can join another employment voluntarily. Being arm forces part is allowed too.
Conclusion:
To sum up the discussion, we can say that the Self-employment Income Support Scheme is a great help to self-employed people to survive hard times like COVID – 19. It keeps the business breathing as well. We hope the blog is proved to be a fruitful read and satisfying for your knowledge quest.
