Self-employed grant extended: Are you now eligible for the SEISS scheme? | Personal Finance | Finance
The Self Employment Income Support Scheme (SEISS) was launched earlier this yr by Rishi Sunak in a bid to assist self-employed employees in Britain amid the coronavirus pandemic. The Chancellor of the Exchequer has championed the scheme and its growth to incorporate 600,000 new self-employed employees. The scheme continues to be going through criticism from many, with some estimating as much as three million are nonetheless ineligible for assist however are you included in the 600,000 now eligible for the scheme?
What is the SEISS scheme?
The Government’s SEISS scheme is actually a self-employed model of the Coronavirus Job Retention Scheme, colloquially referred to as the furlough scheme.
Under the scheme, you can declare as much as 80 p.c of common month-to-month buying and selling earnings fro three months, as much as a maxim of £7,500.
The SEISS grant has been prolonged 3 times up to now, with declare varieties for the fourth grant on account of be made accessible from late April 2021.
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In addition to confirming the fourth and fifth grants, the Chancellor additionally revealed the scheme wouldn’t be accessible to as much as 600,000 extra folks.
The scheme has confronted continued backlash and criticism relating to its exclusion of thousands and thousands of individuals.
Mr Sunak stated: “I can also announce a major improvement in access to the self-employed scheme.
“When the scheme was launched, the newly self-employed couldn’t qualify because they hadn’t all filed the 2019-20 tax return.
“But as the tax return deadline has now passed, I can announce today that, provided they filed a tax return by midnight last night, over 600,000 more people, many of whom became self-employed last year can now claim the fourth and fifth grants.
“Over the course of this crisis, we will have spent £33 billion supporting the self-employed; one of the most generous programmes for self-employed people anywhere in the world.”
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The standards for the fifth grant can be fully totally different.
Anyone whose turnover has fallen by 30 p.c or extra will proceed to obtain the full grant value 80 p.c of their common buying and selling earnings, which is capped at £7,500.
For these with turnover which has fallen by lower than 30 p.c, these people will obtain a grant equal to 30 p.c of their regular earnings, capped at £2,850.
Any contractor or freelancer whose earnings exceed £50,000 a yr can be excluded from the scheme.
The majority of a claimant’s revenue should come out of your freelance or contractual work to qualify.
Companies administrators who pay themselves by way of dividends are additionally not eligible for assist.
The Treasury stated 2.7 million folks had obtained assist from SEISS.
However, critics declare the coverage excludes as much as three million individuals who don’t qualify for the help.
One Twitter person wrote: “We stayed at home. We kept our distance. We protected the NHS. But the government did not protect 3 million self-employed workers. They have now endured an entire year without any financial support whatsoever. Do their lives not matter? #ExcludedUK #Budget2021”
Excluded UK is a marketing campaign working to “bring about an end to the exclusions in the UK Government’s Covid-19 financial support measures”.
Following the Budget, the group stated: “ExcludedUK welcomes the extension of SEISS with the inclusion of 2019/2020 tax returns in the calculator of trading profits, for which we have been campaigning vigorously over the last year.
“However, we know that at least three million taxpayers and households have been affected and even this further support does not account for this last year of decimated incomes and businesses for those who are now included, for whom this may be too little, too late.”
They added: “The majority of those who have been shut out of meaningful support thus far will continue to be excluded from the schemes and so many have been plunged into debt and poverty, often in the hardest-hit industries and supply chains.
“It is also vital to recognise that those individuals excluded from support are not just self-employed.
“They are also limited company directors, employees who were denied furlough for a variety of reasons, zero-hour contract workers and PAYE freelancers.”
Another social media person tweeted: “I can’t even begin to explain the anger I’m feeling right now. I’m so angry I’m shaking. Never have I felt so much anger and hatred toward one person Rishi Sunak. I’ve lost my wife, my kids, my house, my business, my savings. I’m done. #ForgottenLtd #ExcludedUK”
Money knowledgeable Martin Lewis tweeted: “Rishi “We will continue doing whatever it takes to support British people and businesses” – the phrase that sticks most in the claw of many #ExcludedUK #Budget2021”.