The coronavirus pandemic has caused upheaval worldwide, with businesses closed, workplaces unable to keep staff on and the risk of a double-dip recession. To help keep self-employed people afloat the Government introduced the Self Employment Income Support Scheme or SEISS.
Now the fourth grant is due to be issued later this year, with Britons able to claim money to cover the period between February and April 2021.
The Government has said the SEISS scheme one of the most generous self-employment support schemes worldwide put in place during the pandemic.
The third SEISS grant is still open for applications, however, there are some strict criteria to bear in mind.
Claimants are self-employed individuals or members of partnerships, but must have traded in the 2018 to 2019 tax year, and submitted a Self Assessment tax return on or before April 23, 2020.
The grant is subject to tax
The SEISS grant – if you are eligible – will be paid in one lump sum into your bank account.
Those claiming SEISS do not have to repay the grant, however, should be aware it is subject to both Income Tax and National Insurance contributions.
Any SEISS grants claimed must also be reported on your 2020 to 2021 Self Assessment tax return.
Look at what other help you may be eligible for
For those who are struggling financially due to the pandemic, there may be other avenues to pursue.
This can be claiming Universal Credit, however, even if the claim is not approved it will affect any tax credits you claim.
So you should:
- check how tax credits and other benefits affect each other
- find out what to do if you’re already getting benefits
The government is also providing the following help for the self-employed:
- grants for businesses that pay little or no business rates
- Business Interruption Loan Scheme
- Bounce Back Loan
- Test and Trace support payments