Help for coronavirus self-employed and small limited companies

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    The self-employment support system still has “missing months”

    When the government first announced the SEISS grant, its own press release dated March 26, 2020 stated: “The income support system … will cover the three months to May,” that is, March, April and May.

    Then it announced a second grant that will cover another three months’ worth of trade profits. The logic (and the basic count) suggest that this second three-month scholarship covers June, July, and August. Strangely enough, to achieve this you had to explain that your work was not affected until after mid-July.

    After first demonstrating that the three-month grants corresponded to the actual specific months of the disruption, HMRC stated that, after all, the grants did not relate to specific months. They are just grants, it was said, even though each is based on three months of trading profit. Then when the third grant went into effect, it was there to cover the period from November 1, 2020 to January 31, 2021

    How to do the math …

    These are grants worth a total of nine months for the period from March 1, 2020 to January 31, 2021, a total of 11 calendar months. This means that two months are missing, which we believe will be September and October 2020.

    Another two months are missing …

    Now there are the newly announced fourth and fifth grants. The fourth covers the period February to April 2021 and the fifth and final grant covers the period May to September. Crucially, however, both grants are still worth an average trading profit of three months. The six-month support extends over eight months. The self-employed lose support for another two months.

    We asked the Treasury Department about the missing months and the answer was that SEISS is not intended as a monthly replacement for self-employed income.



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