Self-Employment Income Support Scheme

Support provided by HMRC

What does this involve?

If you’re eligible based on your tax returns, HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.

The online service to claim the fifth grant will be available from late July 2021. You must make your claim on or before 30 September 2021.

If you're a self-employed individual or a member of a partnership and have been affected by the coronavirus (COVID-19) crisis, you can apply for a taxable grant through the Self-Employment Income Support Scheme (SEISS).

The amount of the fifth grant will be determined by how much your business turnover has been reduced.

The fifth grant will be worth:

  • 80% of 3 months’ average trading profits, capped at £7,500, for those with a turnover reduced by 30% or more
  • 30% of 3 months’ average trading profits, capped at £2,850, for those with a turnover reduced by less than 30%

Am I eligible?

To be eligible for the fifth grant, you must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust.

You must have traded in both tax years:

  • 2019 to 2020
  • 2020 to 2021

You must also have:

  • submitted your 2019 to 2020 tax return on or before 2 March 2021
  • trading profits of no more than £50,000
  • trading profits at least equal to your non-trading income (any income from sources other than your trade)

If you’re not eligible based on the trading profits in your 2019 to 2020 return, HMRC will look back at previous years.

You must either:

  • be currently trading but are impacted by reduced demand due to coronavirus
  • have been trading but are temporarily unable to do so due to coronavirus

You must also declare that:

  • you intend to continue to trade
  • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from 1 May 2021 to 30 September 2021

You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.

SEISS grants are not counted as ‘access to public funds’ and you can claim the grant on all categories of work visa.

There are some circumstances that can affect the scheme, such as:

  • your return is late, amended or under enquiry
  • you’re a member of a partnership
  • you had a new child
  • you have loans covered by the loan charge provisions
  • you claim averaging relief
  • you’re a military reservist
  • you’re non-resident or chose the remittance basis

If you claim Maternity Allowance this will not affect your eligibility for the grant.

Visit the HMRC website for more information on how your circumstances affect your eligibility.

What does this cost?

It is free to apply for a grant under the scheme.

The grant is subject to Income Tax and self-employed National Insurance Contributions. It must be reported on your 2021 to 2022 Self Assessment tax return.

The grant also counts towards your annual allowance for pension contributions.

Who is this for?

Self-employed individuals or members of a partnership who have been adversely affected by the coronavirus pandemic.

How long does this take?

The online claims service for the fifth grant will be available from late July 2021.

If you’re eligible based on your tax returns, HMRC will contact you in mid-July 2021 to give you a date that you can make your claim from.

You must make your claim on or before 30 September 2021.

Important information

The fifth grant is different from previous grants. In most cases, when making your claim you’ll need to tell HMRC about your business turnover so they can work out which level of grant you can receive.

To make your claim, you’ll need to have 2 different turnover figures. You’ll need to work out your turnover for:

  • a 12-month period starting between 1 April 2020 and 6 April 2020
  • either 2019 to 2020 or 2018 to 2019

HMRC will compare these figures to work out how much you’ll get.

You will not have to provide any turnover figures if you started trading in 2019 to 2020 and did not trade in the following tax years:

  • 2018 to 2019
  • 2017 to 2018
  • 2016 to 2017

Find out more information on how HMRC work out your trading profits.

Next steps

If you’re eligible based on your tax returns, HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.

The online service to claim the fifth grant will be available from late July 2021.

You must make your claim on or before 30 September 2021.

Visit the UK Government website for more information.

Support provided by HMRC

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