COVID-19 has affected so many aspects of life including financial. If you are a self-employed parent and your business has been affected by the impact of COVID-19, read on to hear how HMRC could be able to help you back on track.
What is the Self-Employment Income Support Scheme?
The Self-Employment Income Support Scheme (SEISS) supports self-employed individuals (including members of partnerships) whose business have been adversely affected by COVID-19. Those that meet the eligibility criteria can claim up to two taxable grants:
- The first, where your business has been adversely affected by COVID-19 up to or on 13 July, is worth 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profit and capped at £7,500 in total.
- The second, where your business has been adversely affected by COVID-19 on or after 14 July, is worth 70% of average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profit and capped at £6,570 in total.
What has changed?
If you did not submit a tax return for 2018/2019, or your trading profits in 2018/19 were less than your other income (and you were therefore ineligible for the SEISS) because you were pregnant or taking time out of your trade to care for a newborn or newly adopted child, you may now be able to claim for the SEISS, provided you meet the other standard eligibility criteria.
You can read further guidance around these changes on gov.uk. There is also a helpful HMRC video on YouTube if you want to find out more.
Please note: These changes do not affect the grant calculation for those who were already eligible for SEISS but had periods of paused trade or reduced profits due to parental responsibilities. If you already meet the eligibility criteria, you can claim the grants in the normal way through gov.uk. If you were already eligible, the deadline for claiming the first grant was 13 July 2020.
I think I am now eligible – how do I claim?
If these changes mean you may now be eligible, you need to confirm to HMRC that being a new parent affected your trading profits or total income in the tax year 2018 to 2019, and provide supporting evidence.
You can do this for the first and second grant using an online form. You will be asked to provide information such as:
- Child Benefit reference number
- Birth or adoption certificate number
- Maternity Allowance reference
The online form is now available on GOV.UK, click on the button below to access the online form.
Find out more about the scheme from the video below.