Understanding The Self-Employment Income Support Scheme

HMRC has started to contact taxpayers who are eligible for support under the Self-Employment Income Support Scheme (SEISS). There is also an eligibility checker so you can discover if you'll get help ...

HMRC hasn't changed its guidance substantially, but there are definitely a number of published clarifications to certain questions raised by both MPs and the wider business community across the United Kingdom.

"The first questions about a business being adversely affected is a simple one!"

It means that a taxpayer is unable to work because they are shielding, self-isolating or actually sick. Alternatively, they may have care responsibilities when looking after a close family member. It also includes circumstances such as scaling down or even stopping trading temporarily because of supply chain issues or a reduction in (or total loss of) their customers and clients.

However, trusts are not eligible to claim, and anyone reaching the state aid limits will not be supported either. The Self-Employment Income Support Scheme will also allow claims from individuals with any category of work visa.

HMRC has recently published a guide as to how it decides if you're eligible and how it calculates the grant. If you are eligible, then you can work out how much you'll get quite quickly if you have your last 3 years accounts to hand. Average the trading profit of the three years ending 5th April 2019, divide by 12, multiply by 3, then calculate 80% of that figure.

If you want to check your eligibility for yourself, then HMRC has a handy form available where you just need to enter your Unique Tax Reference and your NI Number to hand. It will then tell you if you are, or are not, eligible for SEISS support.

If you are eligible for support, you'll be given the date you can apply which is a randomised date from the 13th to the 18th May as they don't want to overload the system and slow down the processing of claims.

Giving them your email address and mobile phone number means they'll contact you on the day you've been assigned, and there'll be links in the messages to follow so you can make your claim. Please note, you'll need your Government Gateway login details to do this part.

"Be warned!"

From the 13th May onwards, there are likely to be a lot of fake messages to your email and possibly your mobile from scammers. Hence, if you're unsure of anything you receive, open a browser window and visit the HMRC website directly and find your way to the SEISS claim page from there.

If you don't register via the website and are eligible under the Self-Employment Income Support Scheme, then HMRC will write to you and offer an alternative telephone-based service for the digitally excluded. We are still waiting on further information on this process.

Do be aware that it's the taxpayer's responsibility to claim from the Self-Employment Income Support Scheme. Agents are being bypassed by HMRC so it may be worthwhile checking your eligibility today.


If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.