Since May, the Government’s Self Employment Income Support scheme (SEISS), has provided financial support to eligible business owners who’s income had been adversely impacted by Covid19. Many have taken advantage of this grant, but for some new mothers and fathers who work for themselves, there may have been an opportunity missed to access some valuable help.
With the deadline for submissions ending on July 13th, it is feared that some new or expectant parents may not be aware of what the scheme still offers to them.
If you’re self-employed but when you apply are taking a break from your trade because of a new baby or adoption, or have done since 6 April 2019, you may still be eligible because HMRC will treat you as still trading.
If you claim Maternity Allowance this will not affect your eligibility for the grant.
Who is Eligible?
- Self-employed with trading profits of up to £50,000, making most of their income from self-employment
- You submitted a Self-Assessment tax return for April 2018/19. You must have traded in 2019/20 and be continuing to trade in 2020/21 or would have traded, had it not been for COVID19 or have been on parental leave in that period.
What should I do now?
- Check if HMRC has contacted you. If you cannot find details, you can check your eligibility for SEISS online (you will need your Unique Tax Number and National Insurance)
- Make your claim through the HMRC portal no later than July 13th for the first grant.
- A taxable grant worth 80% of 3 months average profits over the last 3 years to April 2019, will be paid as a lump sum within 6 days of submission, capped at £7500.
Can I claim a second grant on the extended scheme?
If your business has been adversely impacted by the coronavirus outbreak ON OR AFTER July 14th, you will be able to claim a second grant up until August 2020. This includes business owners who may not have needed to claim the first grant.
You can receive a taxable grant worth 70% of your average monthly trading profits for 3months, paid as a lump sum, up to £6,570 in total.
If you are on parental leave after July 14th, 2020, you are still entitled to apply.
For either grant, your business must have been adversely impacted by Covid19, this might include
- Shielding due to yourself or your household being in an at-risk category or pregnancy
- Closure of premises
- Significant reduction in turnover due to cancelled sales or contracts
- Sickness or self-isolating due to Coronavirus
- Caring responsibilities during the outbreak
HMRC give examples of how a business might be impacted in order to claim.
What other help is available for you and your business?
Here at EnterprisingYou we can support the self-employed and gig economy workers of Greater Manchester. For more personalised advice, please contact us on 0161 667 6900 or email to firstname.lastname@example.org. You can also sign up our programme here.