The Chancellor announced the following new measures on 26 March 2020.
Support for the self-employed during the coronavirus crisis:
A taxable grant of the lower of:
- £7,500 and
- 80% of your average monthly profits over the three years 2016/17, 2017/18 and 2018/19.
- Initially capped for three months.
Available to self-employed individuals:
- With trading profits up to £50,000 per year whose majority of income comes from being self-employed.
- Who have been adversely affected by the coronavirus crisis.
If you receive the grant you can continue to work or take on other employment including voluntary work.
Claims are due to commence from 13 May 2020, with the first payments expected from 25 May 2020 and within 6 working days of claims being made.
Company directors are employees for PAYE purposes and not self-employed.
How to Apply
HMRC have started contacting self-employed customers who they think could be eligible for the Self-Employment Income Support Scheme (SEISS), based on the information they provided in their 2018 to 2019 tax return.
Agent are not able to make a claim on behalf of your clients.
Use HMRC Online checker to see if you are eligible for the grant. You will need your Unique Taxpayer Reference Number and their National Insurance Number.
The application process
The application process goes live on 13 May 2020.
The application process will show how HMRC has calculated the grant you are due to receive.
If you are eligible then you will be given a date, between 13 and 18 May, from which you can apply. This date is assigned randomly to help HMRC manage demand on the service, making sure that everyone who needs to make a claim can do so.
You will also be asked to provide your Government Gateway credentials (user ID and password) and check that the bank and contact details are up to date. This is important so that the HMRC can we can remind you by email or text message when it’s your turn to make a claim.
If you do not have Government Gateway credentials, you can set those up simply if they follow the HMRC guidance and use the SEISS eligibility checker. There will be no requirement for you to wait for pins or codes through the post.