UPDATED 1 JULY 2020
SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS) EXTENSION
As you may already have heard or read the Chancellor announced on Friday 29th May 2020 that the Government’s Self-Employment Income Support Scheme (SEISS) will be extended, giving more security to individuals whose livelihoods are adversely affected by coronavirus in the coming months. Those eligible able to claim a second and final grant capped at £6,570.
Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
On 12 June HMRC published examples to show when the “adversely affected” criteria for the first and second SEISS grants will be met. It confirms that those who are self-employed and able to return to work as normal in June will not be eligible for a second grant, although they can claim a grant for the first period.
A second and final grant can be claimed in August 2020. It is worth 70% of average monthly trading profits, and will also be paid out in a single installment covering three months’ profits and is capped at £6,570. While eligibility for the second grant is the same as the first grant, it is a separate claim and those claiming will have to confirm their business has been adversely affected by COVID-19 on or after 14 July 2020.
HMRC’s examples confirm that individuals can claim for the second grant even if they did not claim the first grant, as long as their circumstances have changed due to COVID-19 and all other criteria are met.
HMRC’s guidance gives the following examples of when a business might be adversely affected:
The business owner is unable to work because they:
o are shielding,
o are self-isolating,
o are on sick leave because of coronavirus, or
o have caring responsibilities because of coronavirus.
The business has had to scale down or temporarily stop trading because:
o the supply chain has been interrupted,
o there are fewer or no customers or clients, or
o staff are unable to come in to work.
This list is not exhaustive; another example might be additional costs incurred to enable the business to comply with physical distancing requirements.
To summarise: if the business is adversely affected in the period up to 13 July 2020 they can claim the first grant, if they are adversely affected in in the period from 14 July 2020 they can claim the second grant. When the Chancellor announced the scheme he referred to the first grant as covering March to May 2020 but the position subsequently changed: the grants are for nominal three month periods with entitlement based on whether the business is adversely affected in the period to 13 July 2020 or after that date.
UPDATED 7 MAY 2020
SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)
Following on from the Job Retention Scheme support provided for those in employment, HM Revenue & Customs will be contacting you if you are registered as self-employed and:
your profits are less than £50,000; and
your profits account for more than 50% of your total income.
To be eligible you must also meet the following criteria:
you have traded in the tax year 2019/20;
you must be trading when you apply, or would be except for Coronavirus;
you must intend to continue to trade in the tax year 2020/21;
you must have lost trading profits due to Coronavirus;
Our understanding is that, even if you have still worked to some degree during this period, you will still be eligible to claim the full grant.
If you wish to check to see whether you are eligible for the grant then follow the link below and have your Unique Tax Reference number (UTR) and National Insurance number to hand ready to enter where appropriate. After entering these details HM Revenue & Customs will confirm the date you can make the claim or if you are not eligible to do so.
Your UTR or National Insurance number can either be found on any paper tax returns we have sent you in the past, at the top of the tax calculations, or on the front of the tax returns that we have sent to you via our website portal, IrisOpenSpace.
Unfortunately, HM Revenue & Customs are not allowing accountants the ability to make claims on behalf of their clients and therefore you will need to log into your own Government Gateway account to make the claim.
If you have an existing Government Gateway account then when you log on to your account there should be a button available to press that says that you can make the claim at any time after 13th May 2020 – you will be allocated a time slot.. Thereafter you will simply need to follow the instructions, tick boxes as appropriate, confirm a) to d) above and then provide your bank details so that they can make the payment to you, which will cover April, May and June, hopefully sometime after 26th May 2020 or 6 days after your application. This will be one single claim and one single payment to cover the three month period. Please ensure this payment is reflected in your business records as it will form part of your taxable income for 2020/21.
If you have a Government Gateway account and have mislaid your User ID then unfortunately you will need to contact HM Revenue & Customs direct – this is personal to you and not something that we can help with. If you have forgotten your password then simply follow the link for “forgotten password” – again this is not information we hold on file for you.
If on the other hand you do not have an existing Government Gateway account then you will need to create one by following the link below.
You will need to
Press the green “sign in”
On the next page scroll to the bottom and press “continue to your account”
On the next page scroll down to below the green “sign in” button and press “create sign in details”
Enter your e-mail address
You will be e-mailed a confirmation code to enter where indicated
You will then need to set up a password and a recovery word
You will be issued with a User ID
Select “Individual” account required
There will be some extra security to be undertaken via mobile or email
You will need your passport for personal identification
This should complete the registration process so you can now return to the link above.
Please ensure you keep a safe record of your USER ID and PASSWORD as these are unique and personal to you, we do not have access to these details and do not have the ability to be able to log onto your personal Government Gateway account at any time.
As your Accountants we only have limited access to certain information regarding your tax affairs via our “agent” authorisation but this will not enable us to make the claims on your behalf.