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Self-employment Income Support Scheme

Question for Treasury

UIN 110758, tabled on 3 November 2020

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of allowing people who have become self-employed since April 2019 to claim for support from the Self-Employment Income Support Scheme Grant Extension.

Answered on

11 November 2020

The practical issues that prevented us from being able to include the newly self-employed in 2019-20 in the original Self-Employment Income Support Scheme (SEISS), namely that HM Revenue and Customs (HMRC) will not have access to their self-assessment returns to be able to verify their eligibility, still remain. The latest year for which HMRC has tax returns for all self-employed individuals is 2018/19. 2019/20 returns are not due until the end of January 2021.

Unlike for employees, self-employed income is not reported monthly, but at the end of each tax year on the individual’s Income Tax Self Assessment return. This means that the most reliable and up-to-date record of self-employed income is from the 2018-19 tax returns.

The SEISS continues to be just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and other business support grants.

Answered by

Treasury