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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.

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