The coronavirus pandemic has plunged millions into uncertainty, with the closure of non-essential businesses, schools closed and lockdown conditions in place for the foreseeable future. In order to tackle the mounting concern for businesses, the Government has implemented several measures – including the Self Employment Income Support Scheme or SEISS.
SIESS gives a grant to those self-employed who have been impacted by the coronavirus pandemic.
There have been three grants issued, with the fourth due to be paid soon.
Whether a fifth will be considered is yet to be seen, but may well be revealed in the upcoming budget.
Chancellor of the Exchequer Rishi Sunak is due to deliver his budget on March 3, with a plan for propping up the UK during the ongoing pandemic.
How are the grants calculated?
Grants are calculated based on average trading profits.
Below is an example of how the grant will be worked out if your average trading profits were £42,000 over the last three tax years.
If you’re eligible, you’ll receive a grant worth of 80 percent paid out in a single instalment covering three months’ worth of profits and capped at £7,500 in total.
Start with your average trading profit (£42,000).
Divide by 12 = £3,500.
Multiply by 3 = £10,500.
Work out 80 percent of £10,500 = £8,400. You will only receive £7,500 due to the cap.