On Wednesday 17 June the government announced that self employed parents who were previously excluded from claiming Self Employment Income Support Scheme may now become eligible.
Previously, eligibility criteria included the stipulation that current trading profits must be no more than £50,000 but be more than half of total income for either the tax year 2018 to 2019 or the average of the tax years 2016-17, 2017-18 and 2018-19. This therefore precluded many self employed parents whose trading profits dipped in 2018/19 after the birth of a child.
The change means that mothers, fathers and those who have adopted children during those years and who took time away from trading to care for their children within the first 12 months of birth, or within 12 months of an adoption placement, will now be able to use their 2017-18, or both of their 2016-17 and 2017-18 self assessment tax returns as proof of eligibility for SEISS.
The remaining eligibility criteria will also have to be satisfied in order to receive financial support under the scheme, including the requirement to have submitted a tax return for the 2018/19 tax year prior to the extended date of 23 April 2020. Applications for the first grant under the scheme – i.e. 80% of average trading profits capped to a maximum of £7,500 – opened on 13 May 2020 and close on 13 July 2020. Applications for the second grant under the scheme – i.e. 70% of average trading profits capped at a maximum of £6,570 – open in August 2020.
Further guidance is anticipated by the beginning of July 2020. Both tranches under the grant scheme, whilst not repayable, are subject to tax.
You can read more about the SEISS Scheme below: