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Coronavirus (COVID-19): Help for the Self-Employed

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Coronavirus (COVID-19) Help for the Self-Employed

This evening the Chancellor Rishi Sunak announced the highly anticipated Self-Employed Income Support Scheme (SEISS) .

The government guidance gives a fairly concise summary of how the scheme will work and is found here: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

However, I’ll summarise a little further here:

  • SEISS takes the form of a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
  • Applies to Self-Employed Sole-Traders and partners of Partnerships as long as your tax returns are up to date, you’re currently trading and you intend to keep trading beyond this crisis.
  • Your trading profits must be under £50,000 to qualify for help.
  • To work out your average trading profits HMRC will use the values declared in your Tax Returns 2016/17, 2017/18 and 2018/19.
  • You do not need to contact HMRC to apply. HMRC will contact those eligible for SEISS and ask you to apply online.
  • Remember this grant is taxable income. It will also need to be declared as income if your claim Tax Credits or Universal Credit.

What questions now remain?

Where does this leave directors of small limited companies?

The last line of the SEISS guidance reads: “If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme.”

UPDATE 1 Apr 2020: See my post: COVID-19 Job Retention Scheme – Advice for Company Directors

Can the Self-Employed continue to work whilst claiming SEISS?

Yes. There is no restriction made due to claiming this grant. That of course is subject following the social distancing guidelines applicable to all as I’ve explained here Can the Self-Employed go to work?

In contrast employees being funded by the Job Retention Scheme are not allowed to work for their employer or take on any other employment during the term that they’re designated furloughed.

For a reminder on how to furlough a worker see here.

During the crisis I’ll be blogging about government help for small businesses as soon as the guidance is available. My previous COVID-19 post remain relevant and are:

What financial support is available for UK businesses?
Can the Self-Employed go to work?
Help for the Self-Employed and other FAQ’s

Enjoy saving tax? 

We have two videos to help on our YouTube-logo-full_color channel; and for regular tax-tips follow our blog on  or click +Follow at the bottom of this page.

5 thoughts on “Coronavirus (COVID-19): Help for the Self-Employed

  1. Thanks very much John for the information. We appreciate your advice and work. 👍

  2. Pingback: COVID-19 Job Retention Scheme (detailed guidance for employers) | Massey Accounting Company

  3. Pingback: COVID-19 Job Retention Scheme: Advice for Company Directors | Massey Accounting Company

  4. Pingback: COVID-19 Self-Employed Income Support Scheme (SEISS): Get ready to claim | Massey Accounting Company

  5. Pingback: You’ve claimed the SEISS grant – What next? | Massey Accounting Company

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