The impact of having a child on SEISS claim

HM Revenue & Customs has published new guidance for those who are self-employed or a member of a partnership and having a new child affected their trading profits or total income reported for the 2018/19 tax year and their entitlement to the Self Employed Income Support Scheme (SEISS).

If you’re self-employed and had a new child, you may still be able to make a claim for SEISS.

If you’re already eligible for the SEISS grant based on your 2016/17, 2017/18 and 2018/19 Self Assessment tax returns, the calculation to work out your grant amount will not be affected.

However, you may still be able to make a claim if having a new child either:

• affected the trading profits or total income you reported for the tax year 2018 to 2019
• meant you did not submit a Self Assessment tax return for the tax year 2018 to 2019

For the purposes of this scheme, the following would qualify as having a new child:

• being pregnant
• giving birth (including a stillbirth after more than 24 weeks of pregnancy) and the 26 weeks after giving birth
• caring for a child within 12 months of birth if you have parental responsibility
• caring for a child within 12 months of adoption placement

You must have been self-employed in the tax year 2017/18, have submitted your Self Assessment tax return for that year and you must also meet all other eligibility criteria.

HMRC will calculate your eligibility and average trading profits based on your Self Assessment tax returns.  They will use the average of the tax years 2016/17 and 2017/18 if you were self-employed in both these years or just the tax year 2017/18 if you were not self-employed in the tax year 2016/17.

You will need to ask HMRC to verify you had a new child which affected your eligibility and HMRC will contact you if your information has been verified. You must ask HMRC to verify you had a new child before 5 October 2020.

If you would like any assistance on this matter please contact us.