News

Excluded from the SEISS Scheme? Here’s why

The SEISS Scheme was welcomed as the UK went into its first national lockdown due to the coronavirus pandemic. Though many have benefited from this scheme, it has in fact left 3 million self-employed workers out of pocket. We’re taking a look into why this is. 

New to self-employment

If you’re new to being self-employed (6th April 2019 onwards), unfortunately these grants will not be eligible to you. In fact they are based on turnover submitted on the 2016-17, 2017-18 and 2018-19 tax returns.

Trading profits over £50,000

Unfortunately, if you or any business has trading profits £50,001 and over you are not eligible for any of the SEISS support. 

No profit for 2016-17, 2017-18 and 2018-19 

More often than not a business doesn’t start to see a profit being generated until years two and three. This may mean you only receive a tiny amount of SEISS or again, are unable to claim anything at all. 

Have another income?

In receipt of pension payments but also self-employed? Unfortunately, this may impact on your ability to receive SEISS grants. These payments included rental income, widows’ or army pension, and taking some of your pension early. 

Directors deriving most of their income via dividends

This has come as a talking point for many, directors often take a small PAYE salary with the rest being dividends. Though directors are able to furlough themselves, they then cannot take on any work as they are furloughed. 

The list of exclusions is quite substantial, however A P Robinson & Co are here to provide any guidance should you require it. We cannot apply for the SEISS Scheme on your behalf, but we can offer support where necessary. Contact the team today.