HMRC has updated the guidelines for the Self-Employment Income Support Scheme (SEISS). This extension affects self-employed parents who did not submit a tax return for 2018/19, or whose trading profits in 2018/19 were less than their other income, and were therefore ineligible for the SEISS, because they were taking time out of their trade to care for their new-born or newly adopted child (i.e. within 12 months of the birth of the child or within 12 months of an adoption placement).
These individuals will be able to claim for SEISS, if they meet the other standard eligibility criteria, using either their 2017/18 or both their 2016/17 and 2017/18 self-assessment returns as the basis for their eligibility and grant calculation. Those who have become eligible can claim the first SEISS grant, the second SEISS grant, or both (depending on when their businesses may have been adversely affected by Covid-19) when applications for the second grant open in August.
HMRC said that the amendment brings these individuals into eligibility for the scheme. It does not affect the grant calculation for those who submitted a 2018/19 return and were already eligible.
This extension complements the government confirming that parents on statutory maternity and paternity leave who return to work in the coming months after a long period of absence will be permitted to be furloughed under the Coronavirus Job Retention Scheme.
Further information can be found here.
