Question to the HM Treasury:
To ask the Chancellor of the Exchequer, on what basis the upper absolute limit of trading profits of £50,000 in the Self-Employment Income Support Scheme was initially set; whether that level was affected by his estimate of the length of time for which that support would be necessary; and if he will make a statement.
The £50,000 threshold for average trading profits was designed to ensure the Self Employment Income Support Scheme (SEISS) grant is targeted at those who most need it, and who are most reliant on their self-employment income.
The self-employed are very diverse and have a wide mix of turnover and profits, with monthly and annual variations even in normal times, and in some cases with substantial alternative forms of income too. About 95 per cent of those with more than half their income from self-employment in 2018-19 could be eligible for the SEISS.