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SEISS 4 Changes

SEISS 4 Changes and Impact on previously employed & self-employed

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Afternoon,

a friend of mine who was employed and self employed has been told they are not eligible for the 4th grant as the average of their self employed profits over the last 3 years did not exceed employment income.

As a general rule self employed profits have been around £7k and employed income around £20k. This person was made redundant in Oct 2020 so has had no income since. Their self employed income was teaching after school club for kids so that has been nil since March 2020.

So since Nov 20 she has relied on the SEISS grants but is now not eligible to claim the 4th or 5th grant, even though she is currently still not employed.

This just seems plain wrong to me? There must be so many people in this same position? Has anyone else encountered this?

:-(

Replies (5)

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By jonharris999
29th Apr 2021 13:01

Just another example of the unfairness of the rules, I'm afraid - there are estimated to be 1.5m stories leading to the same effect.

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By Mr_awol
29th Apr 2021 13:12

She received grants 1-3?

You say her SE income has typically been c£7k and her employed income £20k, so im not sure how she was ever eligible?

That would seem fair - SEISS is there to cover businesses where it's their main income source, not a side-line/hobby. Having said that, i do have clients who work part time and have a sizeable s/e business which makes almost as much, and i feel for them.

What sucks for your client is she's been made redundant, but (assuming she was never eligible as she didn't earn >50% of her income from s/e) suddenly becoming unemployed shouldn't cause the SEISS to become a much more generous version of jobseekers allowance, surely?

Edit: re-read the OP as it still doesnt make sense, and noticed the bit about her 'not currently being self employed'.

Do you mean she has ceased, or she just hasnt had any work? Is the lack of continuing s/e caused the grants to cease and you actually got the £7k/£20k the wrong way round first time?

Edit 2: Why anonymous, out of curiosity?

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Replying to Mr_awol:
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By Paul Crowley
29th Apr 2021 13:39

Can not follow the logic of question
Clearly incomplete
SEISS was never intended to be for trivial side lines, intended for people in need who relied on the money as main income
The £20K employment and £7K self employment ruled friend out of SEISS from day one, if consistent with prior years
Logically the employment must be a recent thing so not employed 4 years ago
Universal credit picks up the loose ends, Not taxable and probably higher than SEISS on £7,000 anyway

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By Paul Crowley
29th Apr 2021 13:29

Yes

All because in ye 20 he had £7,000 employed income, but only £400 self employment.

BUT clearly his self employment was trivial in 2020 so he really ought to be grateful for the first three handouts
There was no lockdown for most builders

Blame the employer
Employer could have run with furlough all that time

One of my clients got £8,000 in Universal credit in the year to 2021 as she had zero SEISS

Maybe your friend would be better off on Universal credit than SEISS?

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By paul.benny
29th Apr 2021 14:10

I would certainly agree that 'friend' should apply for UC if they haven't already done so. Turn2us.org has a free anonymous benefit calculator to help identify entitlements and also to compare different scenarios

Also checkout the information from Citizens Advice and MSE.

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