Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect of the inclusion of interest income that falls within the tax free threshold as income earned outside of self-employment when people make applications for payments through the Self Employment Income Support Scheme.

The Government has taken substantial steps to support the self-employed during the COVID-19 pandemic, with the Self-Employment Income Support Scheme (SEISS) receiving claims from about 2.7 million individuals so far, totalling over £18.9 billion as of 31 December.

HMRC assess eligibility for the SEISS based on trading profits and non-trading income reported on Income Tax Self-Assessment returns.

Interest that falls within the Personal Savings Allowance is declared on Income Tax Self-Assessment returns.

All interest is included in total income and relevant income (non-trading income) for the purposes of SEISS eligibility. The design of the SEISS, including the eligibility requirement that an individual’s trading profits must be no more than £50,000 and at least equal to their non-trading income, means it is targeted at those who most need it, and who are most reliant on their self-employment income.