Self Employed Income Support Scheme (SEISS) (Sole Traders and Individual Partners)
Second and Final Grant – Are you still eligible?
From 17 August 2020 the Self-Employment Income Support Scheme (SEISS) will open for claims for the second and final grant. If you applied for the first grant, then HMRC may email you regarding the second grant. (The email will be sent from: firstname.lastname@example.org)
You will be able to claim from 17 August 2020 until the scheme ends on 19 October 2020. The eligibility criteria remain the same as for the first grant. However, you will be asked to complete a declaration confirming that your business has been adversely affected by Covid-19 at any time since 14 July 2020. This typically means that your business has experienced extremely reduced income and/or much higher costs because of Covid-19 at any time since 14 July 2020. If you make a claim and your business has not meet this criteria then the claim could be deemed to have been made fraudulently.
HMRC expect you to make an honest assessment about whether your business has been adversely affected. You will need to keep a record of evidence of how your business has been adversely affected and be able to justify this if HMRC call for your records. The second taxable grant is worth 70% of your average monthly trading profits. This will be based on three months’ worth of profits and will be capped at a maximum of £6,570.
How to claim:
On or after 17 August 2020 go to www.gov.uk and in the search box enter: ‘Self-Employment Income Support Scheme’. Please do not try and claim early as the online portal will not be available before 17 August 2020.
What you will need (the same information as was needed to make the first claim):
o National insurance number
o Self-Assessment Unique Taxpayer Reference (UTR) number
o Government gateway user ID and password
o Bank account number and sort code (we recommend you use the account which you usually use for business transactions)
o The address the bank account is registered to. This is probably your trading address or possibly your home address. If you are unsure, we would suggest you check your bank statements.
Once HMRC approve your claim, they will authorise payment direct to your bank account and funds should reach you within six working days.
If you do not have access to an internet connection, then you can make your claim over the telephone. The Covid-19 support number is 0800 024 1222 (Mon – Fri 8am to 4pm). This telephone line is expected to be extremely busy and we would recommend that you only contact HMRC if you are unable to claim online.
SEISS & Tax
The SEISS Grant is taxable income and it must be recorded within your business books and records. You should therefore keep a record of any grants received, as this information will be needed when deal with your tax affairs. If you are VAT registered, then the SEISS grant is outside the scope of VAT and does not need to be reported on any VAT returns.
Coronavirus Job Retention Scheme (CJRS)
The CJRS scheme is still available to assist employers, however, please be sure you are aware of the changes effective over the next couple of months.
o 1 August 2020
The government will pay 80% of wages, capped at £2,500 per month. Employers will pay the employer’s national insurance and pension contributions.
o 1 September 2020
The government will pay 70% of wages, capped at £2,187.50 per month. Employers will pay the employer’s national insurance and pension contributions, as well as and 10% of wages to make up 80% total up to a cap of £2,500.
o 1 October 2020
The government will pay 60% of wages, capped at £1,875 per month. Employers will pay the employer’s national insurance and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
HMRC Fraud Scams
There has been an increase in scam emails, calls and texts. If you are contacted by text, phone or email claiming to be from HMRC, stating that you can claim financial help or are owed a tax refund please be mindful that this may be a scam. Do not click on any links or provide any bank account details or personal details over the phone.
This information is designed to assist understanding and does not cover all aspects applicable. We would strongly recommend that you refer to the governments published information, as this may change on a daily basis. Further information is available from: www.gov.uk