UPDATE: Availability of Financial Assistance Available due to Coronavirus as at 4th May 2020
Self-employment Income Support Scheme (SEISS)
HMRC have released a tool to help check whether you will qualify for the SEISS, which can be accessed by following the link for Self-Employment Income Support Scheme.
It is looking likely that the individual will need to apply for this grant, and we will not be able to apply on your behalf. We therefore recommend ensuring you have a Government Gateway ID and have set up the self-employment service on this login so when the time comes to apply, the process will be as quick as possible. If you do not have a login, please set one up by following the instructions on HMRC’s sign in webpage, clicking through to the link to create sign in details; HMRC Sign In
HMRC will contact those who are eligible for this scheme and invite them to apply online. Please do not contact HMRC to apply as the scheme is currently in the process of being set up. HMRC have advised they are aiming to contact those eligible by mid-May 2020 to invite them to claim.
What Information Do I Need to make an SEISS Claim?
You will need the following information to make a claim:
- Your UTR (unique taxpayers reference)
- Your national insurance number
- Government Gateway user ID and password
- Bank account number and sort code for the account the grant will be paid to
You will also need to confirm to HMRC that your business has been adversely affected by Coronavirus.
How Will I Know if my SEISS Claim has been Successful?
You will be informed straight away whether your grant has been approved, and the money will be paid into your bank account within 6 working days.
You must keep a copy of all records in line with the usual self-employment record keeping requirements, including:
- The amount claimed
- The claim reference number
- Evidence that your business has been adversely affected by Coronavirus
You will need to report the grant:
- On your self-assessment tax return
- As self-employed income for any Universal Credit claims
- As self-employed income and that you are working 16 hours a week for any Tax Credits claims.
What are the Main Things I Need to Know about Coronavirus Financial Support for Self-employed People?
As a recap:
This scheme will provide a grant worth up to 80% of profits, up to a cap of £2,500 per month.
HMRC will be averaging profits from tax returns filed in 2016-17, 2017-18 and 2018-19 to calculate the taxpayers grant. The scheme will be open to those where over 50% of their income comes from self-employment and who have profits of less than £50,000.
To be eligible for the scheme you must meet the following criteria:
- Be self-employed or a member of a partnership
- Have lost trading profits due to COVID-19
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID-19) and intend to continue to trade in the 2020-21 tax year
- Have trading profits of under £50,000
- Have self-employment income as at least 50% of your total income
If you commenced trading between 2016 and 2019, HMRC will only use those years for which you filed a Self-Assessment tax return.
We will endeavour to keep you updated as changes to this information are announced.
If you have any queries regarding this information, need help managing your accounts, or would like to find the most cost-efficient ways of managing your business finances, please do not hesitate to contact us.
SAS Accounting is a full service professional accountancy team based in Colchester, Essex. We provide jargon-free, understandable financial support to take the stress out of managing your finances.