Rishi Sunak recently extended the Coronavirus Job Retention Scheme – which is also known as the furlough scheme – to October 2020, with additional operational changes arriving in August. This extension led many to theorise on what will happen with the SEISS scheme.
Today in the daily briefing, the Chancellor of the Exchequer confirmed that the SEISS scheme will be extended.
This will be relieving for those reliant on the scheme, which was among the last support measures offered by the state.
The scheme provides people with a direct cash grant worth 80 percent of their average monthly trading profits over the last three years.
According to the government, this covers 95 percent of people who receive the majority of their income from self-employment.
“Together with support packages for businesses and for workers, I am confident we now have the measures in place to ensure we can get through this emergency together.”
The scheme is available for those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19.
To qualify, more than half of the claimant’s income during these periods must come from self-employment.
HMRC contacted eligible claimants directly to invite them to apply for the scheme.
As the scheme opened up, Mr Sunak wanted to assure claimants knew that the state was there to help them, saying: “We’re working ahead of time to deliver support to the self-employed and from today, applications open for the millions of people eligible for the scheme.
“With payments arriving before the end of this month, self-employed across the UK will have money in their pockets to help them through these challenging times.”
There is eligibility criteria in place which determines who can apply for the scheme.
People will be able to claim the scheme if they’re a self-employed individual or a member of a partnership and all of the following apply:
- They traded in the tax year 2018 to 2019 and submitted their Self-Assessment tax return on or before 23 April 2020 for that year
- They traded in the tax year 2019 to 2020
- They intend to continue to trade in the tax year 2020 to 2021
- They carry on a trade which has been adversely affected by coronavirus.
Published at Fri, 29 May 2020 15:17:00 +0000