The Self-Employed Income Scheme (SEISS) was launched on 26 March 2020 by the Chancellor to help self-employed individuals with the financial effects of the Coronavirus lockdown.  More details about the scheme can be found here.

The scheme, as launched, consisted of one grant payable in May, covering the three months March, April and May.  A second grant was announced on 29 May 2020 and will be payable in August.

HMRC calculates the amount of the grant from your tax return data that it holds and invites you to make a claim.

The first grant is based on 80% of your average monthly profits over the last three years, capped at £2,500 per month. The second grant has been reduced to 70% of your average monthly profits over the last three years, to reflect a similar reduction in the employed ‘Furloughed Workers Scheme’.

• The first grant covers the period from 1 March 2020 to 31 May 2020 and is worth up to £7,500
• The second grant covers the period from 1 June 2020 to 31 August 2020 and is worth up to £6,570
• You can apply for the first grant until 13 July. The first grant is worth 80% of your average monthly trading profits, paid in a single instalment covering three months’ worth of profits, up to a maximum of £7,500.
• Applications for the second grant will open in August. The second grant is worth 70% of your average monthly trading profits, paid in a single instalment covering three months’ worth of profits, up to a maximum of £6,570.
• Eligibility for both grants are the same, details about eligibility can be found here.  You will also need to confirm that your business has been adversely affected by coronavirus.
• To be eligbile fro the second grant your business will need to have been adversly affected by the Covid19 restrictions from 14th July.
• Some examples of how your business could have been adversley affected can be found in the HMRC guidance here.
• You do not need to have claimed the first grant to claim the second grant.  For example, if your business has only been adversely affected by COVID-19 in this later phase, but not earlier in the pandemic.

You can check if you are eligible for the grant by using the HMRC online checker here.  If you disagree with HMRC’s decision, you can challenge it from within the tool.

Applications for the 2^nd grant will open on 1 August.

The Chancellor has confirmed that there will be no other changes and no further extensions to the scheme.

If you claim the grant you can continue to work or take on other employment, including voluntary work.

Both grants are taxable and will need to be included on your tax return.