Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact of the introduction of the COVID-19 Self-employment Income Support Scheme on (1) creative workers who have had recent gaps in their earnings because of pregnancy or caring responsibilities, (2) creative workers who have just returned to the UK from overseas working, (3) deaf and disabled workers who claim Universal Credit or other benefits, and (4) those who have become self-employed since April 2019.

The Self-Employment Income Support Scheme (SEISS) will help those adversely affected by COVID-19 and means the UK will have one of the most generous self-employed COVID-19 support schemes in the world.

Those in any industry who have recent gaps in their earnings for whatever reason could still be eligible for the SEISS. For example, if an individual is self-employed but is taking a break from their trade because of a new baby or adoption, or have done since 6 April 2019, they may still be eligible because HMRC will treat the individual as still trading. Individuals may also be eligible for the grant if they are self-employed and are non-resident in the UK, but will have to confirm to HMRC that their UK trading profits are at least equal to their other worldwide income.

Self-employed individuals, including eligible deaf and disabled individuals, can make a claim for Universal Credit while they wait for the grant. The grant may affect the amount of Universal Credit they get, but it will not affect claims for earlier periods.

It has not been possible to include those who began trading after the 2018-19 tax year in the SEISS. This was a very difficult decision and it was taken for practical reasons. 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, which were due at the end of January 2020. The Government recognises that those who started trading more recently will not have submitted a tax return for the 2018-19 tax year, and it considered alternative approaches. However, HMRC would not be able to distinguish genuine self-employed individuals who started trading in 2019-20 from fake applications by fraudulent operators and organised criminal gangs seeking to exploit the SEISS.

Those who are not eligible for the SEISS could be eligible for other significant financial support announced for UK businesses, including the Bounce Back Loans Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments.