SEISS support extension for new parents
The government announced on 19 June that self-employed parents who were caring for newborns in 2018-19 are eligible to make a claim for Self-Employed Income Support Scheme SEISS support extension.
The Institute of Chartered Accountants in England and Wales believes that the move will benefit fewer new parents than expected. However, the extension signals that more COVID-19 funding may be made available for other groups in the near future.
SEISS support extension
Changes apply to parents who have taken time out to have children, alongside self-employed forces reservists who were ineligible for SEISS. Further details from HMRC await, but we do know that the scheme will extend to new parents who did not submit a 2018/19 tax return or whose trading profits were less than their income that year – referred to as the 50% test.
SEISS support extension eligibility will be determined by HMRC on the basis of their 2017/18 and 2016/17 tax returns.
If you claim Maternity Allowance this will not affect your eligibility for the grant.
The extension comes a week after changes to Coronavirus Job Retention Scheme eligibility. Visit How different circumstances affect the Self-Employment Income Support Scheme for updates.
The SEISS currently allows you to claim a taxable grant worth 80% of your average monthly trading profits. This is paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
If you’re eligible you must make your claim for the first grant on or before 13 July 2020.
The SEISS, which has so far had 2.6m claims, was extended last month. Those eligible can claim a second, final grant in August, as well as being able to receive the first.
Count on Cardens
To discuss the SEISS support extension, get in touch with our team on 01273 739592 or . Our line is open Monday to Friday between 8:30am – 5:30pm.