Self-Employed Income Support Scheme – Covid19

UPDATE – 30th November 2020

Applications are now open for the third SEISS grant to support self-employed people affected by coronavirus (COVID-19).

  • 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 – 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.

When deciding whether the reduction is significant, customers will need to consider their wider business circumstances.

HMRC expect claimants to make an honest assessment about whether they reasonably believe their trading profits will be significantly reduced compared to what they would otherwise expect to achieve during this period.

Your business must have been impacted on or after 1 November 2020. Customers must keep evidence that shows how their business has been impacted by coronavirus, resulting in reduced activity, capacity or demand, or a temporary inability to trade.


UPDATE – 04th November 2020

  • Third grant increased from figures released on 23rd October.
  • Third grant available to claim from 30th November 2020.
  • 55% of average trading profits for 3 months, subject to a cap of £5,160. This will cover November 2020 to January 2021.

UPDATE – 23rd October 2020

The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021.

The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

  • The third grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.

  • The fourth grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

The grants are taxable income and also subject to National Insurance contributions.


UPDATE – 24th September 2020

Two additional grants under the Self Employed Income Support Scheme (SEISS) will be issued.

  • Third grant available from November 2020 – 20% of average monthly profits for 3 months until the end of January, up to a total of £1,875 (subject to change, full details released end of October 2020).

It will be available to current SEISS recipients who continue to face reduced demand due to coronavirus.

  • Fourth grant will be available from February 2021. The details of this grant will be released in due course.

UPDATE – 17th August 2020

The second grant of £6,570 is now open to claim.

Deadline: 19th October 2020

To make a claim, click here

The same information is required as for the first claim. See details below

If you’re eligible for the second and final grant, and your business has been adversely affected on or after 14 July 2020 you’ll be able to make a claim in August 2020. You can claim for the second grant even if you did not make a claim for the first grant.

Click here to find out more about the extension to the scheme.


Update as at 15th May 2020

HMRC has opened the Self-Employed Income Support Scheme, where freelancers and contractors can apply up to 80% of lost earnings in a £7,500 lump sum.

To qualify for this grant, your self employed income must be below £50k AND this amount must be >50% of total income.

It is a very quick seamless application process, information required:

1. Personal UTR Number

2. National Insurance Number

3. Government Gateway ID and Password

4. Bank Account Information (where you would like the grant paid into)

The system automatically calculates if you are eligible for the grant and how much you are to receive based on your historic submitted returns.

Only make this claim if you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19).

Around 3.5m self-employed freelancers and contractors will already have been contacted by HMRC, deeming that they are eligible for the Self-Employed Income Support Scheme (SEISS).

Freelancers and the self-employed can apply for a one-off payment of up to £7,500 covering three months. This is based at looking at your tax returns for the past three years and then averaging your monthly income. Only freelancers and the self-employed who have been earning up to £50,000 a year can apply for the self-employed coronavirus income support scheme.

The grant does not need to be repaid but will be subject to income tax and national insurance.

Money should hit bank accounts by May 25 or six working days after a claim is made.

The Treasury is thinking about dropping the ceiling for self-employed support to £30,000 when the scheme is extended.

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