Support for self-employed
The 1st self employed grant window has now closed, if you are affected on or after 14th July 2020 and continuing to trade you may be eligible for a second grant. This grant will be paid in August 2020, we expect a similar email and claim process to come from HMRC in due course, possibly early August 2020.
Support for Self-employed (Sole Traders & Partnerships) - Update 1 June 2020
The Chancellor also announced plans to extend the Self-Employment Income Support Scheme (SEISS) for those people whose trade continues to be, or is newly, adversely affected by COVID-19 (Coronavirus). Eligible self-employed people will be able to claim a second and final SEISS grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single installment and capped at £6,570 in total.
The eligibility criteria for the second grant will be the same as for the first grant. People do not need to have claimed the first grant to claim the second grant: for example, their business may have been adversely affected by COVID-19 (Coronavirus) more recently.
Claims for the first SEISS grant, which opened on 13 May, must be made no later than 13 July. Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single installment covering 3 months' worth of profits, and capped at £7,500 in total). So far, we’ve seen over 2.3 million claims worth £6.8 billion.
More information about the second SEISS grant will be available on GOV.UK on 12 June.
Support for Self-employed (Sole Traders & Partnerships) - Updated 11 May 2020
Directors- Please note it is a common misconception that small company director/shareholders are “self- employed”, they are not, please see our dedicated guidance for directors.
The self employed income support scheme (SEISS) will be open from 13 May for those individuals that qualify. HMRC have staggered the application dates and as such it is important that you read this email and follow the relevant links to find out firstly if you qualify and secondly how you access the scheme.
If HMRC have decided you qualify you can claim support only if your trade continues in 20/21 and is negatively affected by the virus. We recommend keeping evidence of how your business was negatively affected (e.g. declined sales, uncharged work, bad debts)
HMRC are not allowing Accountants to make the claim on behalf of their clients through their agent portal and therefore, you must either make the claim yourself or alternatively we can assist you with the claim. There is more on this under the section below headed up ‘How we can support you’.
HMRC have sent out eligibility letters last week and this week, but if you want to find out if HMRC thinks you are eligible to claim you can click on the following link https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference and enter your 10 digit unique taxpayer reference number and national insurance number, if you don't know your 10 digit UTR, please contact us.
If HMRC indicate that they believe you are entitled to make a claim they will advise you, once you have entered the above details, of the date from which you can make your claim. We believe this is sometime between the 13 May and 16 May.
You will need a government gateway user ID and password to make the claim. If you have an existing gateway, you can log in as normal after the date HMRC give you and make your claim. HMRC will calculate the amount you are entitled to based on the information that they have extracted from your tax returns for the relevant years. This is not to say that in every case HMRC will calculate the correct amount due to you as we have seen some eligibility discrepancies already. However, when making the claim there are no calculations that you have to do.
If you do not have a government gateway, you can set one up by clicking on the following link https://www.access.service.gov.uk/registration/email and follow the instructions. HMRC need to carry out a verification check on you and as such I would suggest that you have an in date passport or a current driving licence when you apply for the ID so HMRC can verify you. You will also need access to your email account and a phone during the process as HMRC will send an email to you with a series of letters that need to be entered and then a text message with a series of numbers that have to be entered each time you access the account.
Once you have the government gateway set up you can then make your claim for SEISS on the date that HMRC tell you.
HOW CAN WE SUPPORT YOU
As explained above we cannot set your government gateway up for you, however, we can help guide you through the process and make the SEISS claim, but to do this we need to be able to speak to you whilst we go through the government gateway application process and we will also need you confirm some answers to questions prior to us making the claim for you through your own government gateway.
If you would like us to carry out this for you the fee is £125 plus VAT and will include the following.
- Checking eligibility for SEISS
- Setting up the government gateway (we need to be able to speak to you whilst we do this)
- Calculating what you are entitled to claim
- Checking this calculation against what HMRC believe you are entitled too
- Dealing with HMRC to dispute the calculations if we believe they are wrong
Making the claim through your government gateway (we must have received a response to an email we send asking you to confirm the answers to a number of questions)
We would encourage you to try and deal with the above yourself but if you would rather we dealt with it please contact us as quickly as possible by emailing Darren at firstname.lastname@example.org or Nathan at Nathan.email@example.com as they will be the first points of contact for this service.