Self-employment Income Support Scheme:
NOTE: THE SCHEME IS NOW CLOSED TO NEW CLAIMS FOR THE FIRST GRANT
What is the second and final grant?
· An extension of the SEISS
· If you are eligible for the first grant and can confirm to HMRC your business has been adversely affected on or after 14/07/2020; you can claim from 17/08/2020
· Taxable grant worth 70% of your average monthly trading profits
· Paid in a single instalment covering 3 months’ worth of profits
· Capped at £6,570 in total
· HMRC will contact you if you’re eligible
· You can make a claim for the second grant even if you did not make a claim for the first grant
How does the grant work?
· If you receive the grant you can:
· The grant does not need to be repaid
· It will be subject to Income Tax and NI
· HMRC will work out if you’re eligible and how much you will get
Who can apply?
1) Self-employed individuals
2) Members of a partnership
· Your business has been adversely affected on or after 14 July 2020 such as:
- You’re unable to work due to:
- You’ve had to scale down
NOTE: You must keep evidence to confirm your business was adversely affected at the time you made your claim
The following must also apply:
· Traded in 2018-19 and submitted a Self-Assessment tax return before 23 April 2020
· Traded in tax year 2019-20
· Intend to continue to trade in the tax year 2020-21
· Carry on a trade that is adversely affected by COVID
NOTE: You cannot claim the grant if you trade through a limited company or a trust.
· Self-employed trading profits < £50,000 and at least equal to your non-trading income for either 2018 to 2019 tax year, or as an average of tax years 2016-17, 2017-18 and 2018-19.
NOTE: Trading profits do not include dividends paid from your own company to yourself.
Note: If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020.
How to claim?
· You can now claim on-line https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
· You must make the claim yourself. Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.
How can different circumstances affect the scheme?
Check if your circumstances affect your eligibility for the following:
· if your return is late, amended or under enquiry
· if you’re a member of a partnership
· if you had a new child
· if you have loans covered by the loan charge
· if you claim averaging relief
· if you’re non-resident or chose the remittance basis
· if you’re a military reservist
What you’ll need to apply ON OR BEFORE 19 OCTOBER 2020?
· Government Gateway user ID and password - if you do not have a user ID, you can create one when you make your claim
· UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
· bank account number
· sort code
· name on the account
· your address linked to your bank account
How much you’ll get?
It’s a taxable grant which will be 70% of the average profits from the tax years (where applicable):
The average: Total trading profits and losses for the 3 tax years divided by 3, divided by 12 to calculate a monthly amount.
The average if you did not trade in 2016/2017: Total trading profits and losses for the tax years 2017/2018 and 2018/2019, divided by 2, divided by 12 to calculate a monthly amount.
The average if you did not trade in 2017/2018: Trading profit/loss for the tax year 2018/2019 only (even if you traded in 2016/2017), divided by 12 to calculate a monthly amount.
A maximum payment of £6,570for 3 months in total, will be paid directly into your bank account, in one instalment.
How to claim?
The online service is not available yet. If you’re eligible you’ll be able to make a claim for a second and final grant from 17 August 2020.