Cash Grants and possible actions for the self employed
Important update – 18th June 2020…
SELF EMPLOYED INCOME SUPPORT extension for another 3 months click here
If you’re eligible for the second and final grant, and your business has been adversely affected on or after 14 July 2020 you’ll be able to make a claim in August 2020. You can claim for the second grant even if you did not make a claim for the first grant.
You must make your claim for the first grant on or before 13 July 2020.
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for 3 months capped at £7,500.
The SEISS Portal link
https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
I have been made aware that many self-employed individuals have been waiting to receive their received their letters from HMRC which have not materialised. It is important to those clients to go through the eligibility checker rather than wait for correspondence which might never turn up. Please also note that the checker itself might not be right. In a small number of cases it has stated that the person concerned is eligible when they are not. For example the person has incorporated their business in 2019/20. In some cases they are stating they are not eligible when both the client and the accountant think they are. If that is the case ensure that the client insists on a review which can be accessed through the checker.
1. During the application process the individual should be presented with a calculation of the grant amount.
2. There is no option to claim a reduced or increased amount.
3. If the individual disagrees with the amount shown there will be a ‘review’ link to request that HMRC should review the figure to see if it should be higher or lower.
4. The SIESS helpline number will be 0800 024 1222. This can be used for SEISS queries or with issues of not being able to make the claim through the Gateway portal. You will not be surprised to hear that you can expect delays when calling this number.
5. There is also an online webchat available as well to try to assist individuals with their queries and the application process. Again expect delays. The link is shown below:
https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
6. Most individuals will want to make a claim as soon as possible, but those who are claiming universal credit may find that they are better off delaying the claim so that the receipt falls into a later monthly assessment period.
Important update – 6th May 2020…
SELF EMPLOYED INCOME SUPPORT clicking here
Important update – 5th May 2020…
SELF EMPLOYED INCOME SUPPORT
It’s very important to note that the Agent cannot make the claim for the individual they can only assist the client in doing so. The agent won’t be able to access the SEIS claim portal through your Agents connections. The client must have a Government Gateway ID and password. If they do not they will not be able to make a claim. You need to check this with your client.
If they do not have a Government Gateway ID then they can obtain one through the Eligibility tool which HMRC have set up:
https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
When your client clicks on the link it will ask for his/her UTR and then National Insurance number. Once that is put in, the online tool should advise whether or not HMRC think the individual is eligible for the scheme. If they are, HMRC ask the person to add their contact details as they will use this to tell then when to claim and what they need to do beforehand.. When your client clicks through at that point, the online tool ask for their Gateway ID and password. If they haven’t got it then via the online tool they can request a Gateway ID. Failure to have a Gateway ID will delay the ability for the individual to make a claim.
As a footnote, people have been notified that the online portal and claims can be made at 8am on 13th May 2020. It was interesting to note on the online tool it was saying the portal will be open at 8am on 14th May 2020. I think prepare for the 13th.
See an important update 2nd May 2020 from us by clicking here
You can apply if…
– you’re a self-employed individual or a member of a partnership and
– you have submitted your Income Tax Self Assessment tax return for the tax year to 5 April 2019
– traded in the tax year 5 April 2020
– are trading when you apply, or would be except for COVID-19
– intend to continue to trade in the tax year 5 April 2021
– have lost trading/partnership trading profits due to COVID-19
– your self-employed trading profits must also be less than £50,000 and
– more than half of your income come from self-employment. This is determined by at least one of the following conditions being true:
1. having trading profits/partnership trading profits in 5 April 2019 of less than £50,000 and these profits constitute more than half of your total taxable income
2. having average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits constitute more than half of your average taxable income in the same period.
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year to 5th April 2019, you must do this by 23 April 2020.
HMRC will use data on 5th April 2019 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
How much you’ll get…
You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
2016 to 2017
2017 to 2018
2018 to 2019
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.
It will be up to a maximum of £2,500 per month for 3 months.We’ll pay the grant directly into your bank account, in one instalment.
How to apply…
– You cannot apply for this scheme yet.
– HMRC will contact you if you are eligible for the scheme and invite you to apply online.
– Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.
See more information from the government by clicking here
See possible actions for the self employed by clicking here
See a summary from us by clicking here
See more information by clicking here
