The new Self-employment Income Support Scheme (SEISS) will support self-employed people (including members of partnerships) whose income has been negatively impacted by COVID-19
The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month. You can take a look at the Government’s website for further information on eligibility and Frequently Asked Questions.
Further information is also available from
https://www.businesssupport.gov.uk/self-employment-income-support-scheme-faqs
How will it work?
HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000.
The scheme will be open for an initial three months with people able to make their first claim by the beginning of June. You do not need to get in touch with HMRC as the scheme isn’t yet open for applications. HMRC will contact eligible customers by the beginning of June, inviting them to apply.
If you are self-employed, your income has significantly reduced or ceased, and you will not be eligible for the new scheme or you need financial help until it comes on line, you may wish to consider making an application for Universal Credit. This is a payment to help with living costs, it is paid monthly and is calculated based on your household and income circumstances. Universal Credit can also help you with your housing costs.
Avoid being scammed
Please note that, due to an increase in scam emails, calls and texts, HMRC have advised that if someone gets in touch claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card or bank details, please do not respond. HMRC will never contact you out of the blue to ask for these details.
Helpful contacts
Visit: GOV.UK – Universal Credit
Phone: 0800 328 5644
Textphone: 0800 328 1344
You can contact the Citizens Advice Bureau if you need help with the online process.
You could also consider other options to manage your finances, for example, applying for Council Tax Support or arranging a mortgage holiday with your bank. Shelter have published some useful housing advice for people who rent or own their homes.