CHECK IF YOU CAN CLAIM A GRANT THROUGH THE SELF-EMPLOYMENT INCOME SUPPORT SCHEME

HMRC updated their guidance 4 May to outline the process for applying for SEISS.

Full details:  https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single installment covering 3 months, and capped at £7,500 altogether.

You will get a taxable grant based on your average trading profit over the 3 tax years:

• 2016 to 2017
• 2017 to 2018
• 2018 to 2019

HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then they will divide by 3.

The grant will be 80% of your average monthly trading profits, paid out in a single installment covering 3 months, and capped at £7,500 altogether. The online service will tell you how HMRC have worked the grant out.

The grant amount HMRC work out for you will be paid directly into your bank account, in one installment.

Find out how HMRC will work out your average trading profits including if you have not traded for all 3 years here: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme#threeyears

If you receive the grant you can continue to work, start a new trade, or take on other employment including voluntary work, or duties as an armed forces reservist.

The grant will be subject to Income Tax and self-employed National Insurance.

There is other support available if you are not eligible for the grant.

HMRC will work out if you are eligible and how much grant you may get.

Check if you are eligible to claim

HMRC have an online eligibility checker which links from their web page:  https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

The guidance goes on to indicate that you will require: -

1. Your Self-assessment Unique Taxpayer Reference Number
2. Your National Insurance Number
3. Your Government Gateway ID and Password
4. Bank account number and sort code for payment

IF YOU KNOW YOUR GOVERNMENT GATEWAY ID AND PASSWORD YOU DO NOT NEED TO TAKE ANY ACTION AT THIS TIME.   IF YOU DO NOT KNOW OR DON’T HAVE A GOVERNMENT GATEWAY ID AND PASSWORD WE RECOMMEND YOU APPLY AS SOON A S POSSIBLE TO AVOID DELAYS IN RECEIVING PAYMENT. YOU MAY BE ABLE TO SUBMIT A PAPER CLAIM (FULL DETAILS NOT YET PUBLISHED) BUT THIS WILL ALSO LEAD TO DELAYS IN PAYMENT.   See our guide: Create a Government Gateway Account

The Rawcliffe & Co team is available via phone or email Monday to Thursday 9-5pm and 9 – 4:30pm on Fridays.

Tel: 01253 798812
Email: info@rawcliffeco.com