The Self-Employment Income Support Scheme (SEISS) has been a lifesaver for millions of self-employed workers in the UK affected by the coronavirus pandemic. But not everyone has benefitted, with many workers not qualifying for the grant. However, support could be on the way in the form of the newly proposed Targeted Income Grant Scheme (TIGS).
Here’s everything you need to know about the new scheme.
What is TIGS?
It’s a scheme intended to support self-employed workers who have been excluded from support packages. It will provide a one-off targeted grant worth between £3,500 and £7,500.
The Gaps in Support All-Party Parliamentary Group, which is made up of 262 MPs from different political parties in the UK, is behind the scheme.
Why do we need TIGS?
The Gaps in Support APPG says the aim of TIGS is to seal gaps in the government’s Covid-19 support package.
While SEISS has provided much-needed support to the self-employed, it is not perfect. Many self-employed workers who require support do not qualify for the scheme.
There are around five million self-employed people in the UK. However, only 3.4 million have claimed SEISS. That means that 1.6 million self-employed people may still need support.
In addition, many others are not considered self-employed under the definitions HMRC provides.
TIGS could help to fix this problem and make sure that all self-employed workers who need support can access it.
Not surprisingly, the scheme is already receiving support from those in the self-employment sector.
For example, Liron Smadja, Director of Global Expansion Marketing at Fiverr, said that:
“The continual mounting issue of SEISS eligibility has left thousands of self-employed workers unable to access government support.
The fourth grant should be an opportunity for the chancellor to solve this crisis and acknowledge that serious consideration needs to be given to this crucial sector of the economy.”
Talking about freelancers, Smadja said that many “remain unrecognised and ineligible” for current support schemes.
She asked the government “to progress with the proposed Targeted Income Grant Scheme to support those who have been self-employed since April 2019.”
Who could benefit from TIGS?
TIGS targets four main groups. We’ve listed them here, together with the proposed grant amount for each.
- The newly self-employed (£3,500). People who became self-employed after 5 April 2019, who have not been eligible for SEISS under current rules.
- PAYE freelancers (£7,500). People who identify as self-employed for tax purposes but are paid on the payroll for some or all of their work.
- Limited company directors (£7,500).
- Taxpayers excluded by the SEISS 50/50 rule (£7,500). The SEISS 50/50 rule requires that at least 50% of a person’s trading profits be from self-employment. Their total trading profits must also be £50,000 or less.
The Gaps in Support APPG says that if approved, the scheme could help as many as 2.9 million UK taxpayers.
When will it come into force?
The TIGS proposal has already been presented to the Treasury. Right now, no one knows if it will be approved.
The good news is that Chancellor Rishi Sunak has said that the government is considering the new scheme.
However, any announcements on the scheme are unlikely until the government lays out its budget in March.
Other support and information
For now, we must wait to see whether the proposed scheme will be approved.
In the meantime, you can head over to the gov.uk website to find out what other support you are entitled to if you are affected by coronavirus.
Also, consider checking out our Coronavirus Money Guide that contains tips to help you protect your finances during these difficult times.