Self-Employment Income Support

As highlighted in the Chancellors Winter Economy Plan, the Self Employment Income Support Scheme has been extended. To see a short summary of the key announcements from the Winter Economy plan, please click here.

The SEISS Grant Extension provides critical support to the self-employed. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.

The rules on who is eligible to claim are different to those for the previous SEISS grants. However, a Self Assessment tax return for the tax year 2018 to 2019 showing self-employment income (unless one of the existing exceptions applies) will still need to have been submitted in order to claim.

The third grant will be based on 80% of three months’ average trading profits, paid out in a single taxable installment capped at £7,500, and will cover the period from 1 November to 29‌‌ Jan‌‌uary 20‌‌21. Self-employed people who are eligible will be able to claim the third grant at any time from 30‌‌ November 2020 to 29‌‌ January 2021.

As previously, the third grant will also be subject to Income Tax and self-employed National Insurance and must be reported on 2020 to 2021 Self Assessment tax returns, due by 31‌‌ January 2022.

What customers should do to get ready

  • Check whether they are eligible to claim, as the eligibility rules are different to the previous SEISS grants.
  • Be aware that, like SEISS 1 and 2, tax agents cannot claim this grant on behalf of their clients; they must do so themselves. If an agent tries to make a claim on a client’s behalf, it will trigger a fraud alert that will delay the payment. Applying online is quick and easy.

Who is eligible

To make a claim for the third grant, customers must meet a number of conditions, and make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced due to coronavirus.

As previously, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on 2020-2021 Self Assessment tax returns.

To make a claim for the third grant, customers must – as previously:

  • be self-employed or a member of a partnership – they cannot claim the grant if they trade through a limited company or a trust
  • have traded in both the tax years 2018 to 2019 and 2019 to 2020.

For this third SEISS grant customers must also now:

  • either be currently trading but are impacted by reduced business activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus
  • declare that they intend to continue to trade, or restart trading, and that they reasonably believe that the impact on their business will cause a significant reduction in their trading profits
  • only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not make a business eligible for the third SEISS grant.

More information and examples are available on‌‌ G‌‌‌‌O‌‌V‌‌.UK to help you check eligibility to claim‌‌.

Page updated: 01/12/2020

Contact us direct if you have any questions or concerns and we will do our very best to help.


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