HMRC has begun contacting customers who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS) ahead of the services launch.
The government said those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits), paid in a single instalment.
Individuals are eligible if their business has been adversely affected by coronavirus, they traded in the tax year 2019 to 2020, intend to continue trading, and they:
- Earn at least half of their income through self-employment
- Have trading profits of no more than £50,000 per year
- Traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year
The claims service itself will open on 13 May and is being delivered ahead of the original timetable. HMRC said this will help millions of self-employed people, covering a wide range of industries and jobs, whose livelihoods have been “adversely affected by the coronavirus”.
The government also said that those eligible will have the money paid into their bank account by 25 May, or within six working days of completing a claim.
HMRC said the scheme brings “parity” with the Coronavirus Job Retention Scheme, where the government committed to pay up to £2,500 each month in wages of employed workers who are furloughed during the outbreak.