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Self-employment Income Support Scheme

Question for Treasury

UIN 49111, tabled on 19 May 2020

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of extending the Self-Employment Income Support Scheme to support people who receive a majority of their income through their armed services pension but earn additional income through self-employment.

Answered on

3 June 2020

The Self-Employment Income Support Scheme (SEISS) helps those adversely affected by COVID-19 and is one of the most generous self-employed COVID-19 support schemes in the world. The SEISS, including the eligibility requirement that an individual’s trading profits must be no more than £50,000 and at least equal to their non-trading income, is targeted at those who most need it, and who are most reliant on their self-employment income.

Income from an armed forces pension is subject to income tax and this is included in the calculation of an individual’s non-trading income. However, certain pensions paid to members of the armed forces, such as the additional pension paid to holders of certain gallantry awards, are not treated as income for income tax purposes. This income is not reported to HMRC and is not included in the calculation of non-trading income.

Individuals receiving more than half their income from other sources, such as pensions, could still be eligible for other financial support. The SEISS is part of a comprehensive package of support for self-employed people, including Bounce Back loans, income tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and various business support measures. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.

Answered by

Treasury