Chamber and committees

The Self-Employed Income Support Scheme (SEISS) is the current system being used to support long-term self-employed people. This is a UK Government Scheme which is available to eligible self-employed individuals or members of trading partnerships who have submitted an Income Tax Self-Assessment tax return for the tax year 2018-19 and are still trading, or would be trading if it weren’t for Covid-19. Eligible applicants will receive a taxable grant which will be 80% of the average profits from the last three years, up to a maximum of £2,500 per month for 3 months and is paid directly into bank accounts, in a single instalment.

I wrote to the Chancellor on 26 May urging him to ensure that just like the Job Retention Scheme, the SEISS was extended also. The Chancellor announced on 29 May that the SEISS would be extended to allow a second grant. Eligible self-employed individuals, or members of trading partnerships, will be able to claim a second taxable grant worth 70% of their average monthly trading profits. This will also be paid out in a single instalment covering three months' worth of profits, capped at £6,750 for the second period. The UK Government have advised that they will be publishing guidance on this second grant on 12 June.

The Scottish Government does not have the powers to create a system of this kind which is why it has been essential that we ensure the UK Government scheme works appropriately to meet the needs of self-employed people in Scotland. We were aware, from correspondence and stakeholders, that the imminent closure of the UK Scheme was the biggest issue facing self-employed people and is why we have encouraged the UK Government to extend the SEISS also.