Millions of self-employed people whose businesses have been impacted by coronavirus will be able to apply for self-employed grants from the government from today.
The Self-Employment Income Support Scheme (SEISS) grant is worth up to 80% of average trading profits for those stuck at home - and is designed to match the support being given to furloughed workers.
The maximum payment will be £7,500, intended to cover March, April and May.
It is the biggest direct financial support package for freelancers and the self-employed since lockdown started, and claims for lost work can be dated back to March.
Here's what you need to know about the scheme.
Who is eligible for the Self Employed Income Support Scheme?
You can claim a self-employed grant if you're a self-employed individual or a member of a partnership and all of the following apply:
- You traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- You traded in the tax year 2019 to 2020
- You intend to continue to trade in the tax year 2020 to 2021
- You carry on a trade which has been adversely affected by coronavirus
HM Revenues & Customs (HMRC) will work out your eligibility by looking at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, then the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019 will be checked.
Those able to make a claim have already been contacted by HMRC, and will be able to apply with a unique reference number.
More than 110,000 people have already applied for the scheme, according to the Government - with claims totalling more than £340 million so far.
Everyone eligible for the SEISS will be able to receive the Government grant by May 25, or within six days of a completed claim.
However, those who started in business from early April last year are not eligible for the scheme, alongside those who pay themselves solely with dividends from a limited company.
How do I apply?
If you're eligible to claim a grant, you’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
Make sure to have your Self Assessment Unique Taxpayer Reference (UTR), National Insurance number, Government Gateway user ID and password, and UK bank details to hand.
Mike Cherry, national chairman of the Federation of Small Businesses, said: “I would encourage all those who think they are eligible to use the online checker if they’ve not done so yet, and to apply on the date allocated.
“We are particularly pleased to see the scheme opening earlier than scheduled, with a simple fast-track application and a promise for speedy payment.”
In an interview with the BBC, Chancellor Rishi Sunak said: "Millions of...people...are eligible, ahead of schedule the scheme is now open, they can apply this week, they’ll be getting the emails and they will have the same amount of support based on their historical earnings… by the end of the month.
