FAQ :: Self Employed during Covid 19

The government’s Self-Employed Income Support Scheme (SEISS) helps sole traders affected by the coronavirus COVID-19 pandemic. The scheme provides self-employed workers up to 80% of their monthly wages, up to a maximum of £2,500 per month.

Unfortunately, sole traders who have not yet submitted their first Self Assessment tax return aren’t eligible for the Self-Employed Income Support Scheme (SEISS), except in Scotland. The Scottish government have announced a Newly Self Employed Hardship Fund for self-employed workers not eligible for SEISS.

For the rest of the UK there are other types of support, such as Universal Credit and the Employment & Support Allowance have been made more accessible to help those impacted financially by COVID-19.

Yes, to help self-employed people who have been financially affected by the coronavirus COVID-19 pandemic, the government have deferred the Payment on Account Income Tax payment. The previous due date of 31st July 2020 has been deferred until 31st January 2021.

Money paid out through the Self-Employed Income Support scheme will be calculated based on your average monthly profits over the last three financial years. If you have been trading for less than three years, HMRC will use the period they do have, and average it up to three years.

Receiving an invitation to claim doesn’t automatically mean you’re eligible, so double check!

HMRC are contacting self-employed workers they believe may be eligible for the Self-Employed Income Support Scheme (SEISS) based on their 2018/19 tax return. Your situation may have changed since that point, but HMRC don’t yet have that data.

The SEISS grant awards 80% of 3 months-worth of average monthly trading profits to eligible applicants, up to total amount of £7,500.

No, the scheme is a grant, so if you successfully make a claim for SEISS, you will not have to repay the money

Yes – the grant money awarded under SEISS is subject to income tax and SEISS rules, so you’ll need to mention the grant on your Self Assessment tax return.

Yes, you can claim the SEISS grant, and still carry on working. Those who receive this support can also start a new trade, carry out volunteer work, or start work for an employer.


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