Self-Employed Income Support Scheme (SEISS) explained


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Self-Employed Income Support Scheme (SEISS) explained

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The government recently announced a new scheme that would support Sole Traders whose business had suffered as a result of coronavirus. In this guide, we'll talk you through what it is, whether you could be eligible and how you can apply.

This information was last updated on the 4 June. We're working hard to ensure that all content on our site is up to date.

What is the Self-Employed Income Support Scheme (SEISS)?

With this scheme, self-employed Sole Traders, and members of partnerships can receive a taxable grant of 80% of their monthly wages up to a max of £2,500 a month, for three months (capped at £7,500). While this grant is subject to Income Tax and National Insurance contributions, it will not need to be repaid.

Recent extensions to the scheme

The Government has extended this scheme to include one more grant payment for self-employed workers. This final payment will cover an additional three months and will be paid out in August 2020. You'll be able to apply for up to 70% of your average monthly earnings, capped at £6,570.

You can still apply to the first grant until 13 July, with applications for the second opening in August.

How will I be assessed?

HMRC will assess your monthly earnings over the last three financial years to work out what you could receive. For younger businesses, HMRC will work out your monthly average based on the period they do have.

HMRC expect to pay SEISS out at the beginning of June 2020.


Am I eligible?

You may be eligible for SEISS if:

  • you've lost trading profits due to coronavirus
  • the majority of your earnings are from self-employed work
  • you're not a director of your company
  • you have filed a tax return for the 2018 / 2019 financial year (you will be given 4 weeks to do so if you have not)
  • you've traded in the 2019/2020 tax year
  • your profits do not exceed £50,000
  • you're trading when you apply (or would be trading if not for coronavirus)

How can I apply for SEISS?

Applications for SEISS opened on Wednesday 13 May. The first part of the application process is to check whether you're eligible – you can do this by clicking on the link below. Once you've completed this, if you are eligible, you'll be given a date and time that you can complete your application. Applications for this payment will close on 13 July, with applications for a second and final payment opening in August.

To apply via the Gov website, click here

Make sure you have the following information to hand before you start your application:

  • Self Assessment Unique Taxpayer Reference (UTR)
  • Government gateway ID
  • UK bank details (bank account number, sort code, name, address)
Words by
Dan Howarth
Article updated on:
October 8, 2020

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