Self-Employment Income Support Scheme (SEISS)

This week HMRC will start contacting people who may be eligible for the new Self-Employment Income Support Scheme (SEISS).

HMRC will work out if individuals are eligible under the SEISS and will calculate how much grant they will receive. Individuals can refer to HMRC’s updated guidance to understand how this works:

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

Main elements of the SEISS

  • If eligible, the SEISS entitles you to claim a taxable grant of 80 per cent of your average monthly trading profits. This will be paid out in a single instalment covering three months and will be capped at £7,500 in total. The grant will be based on your average trading profits over the last three tax years ending in 2018/19.
  • HMRC has produced an online eligibility tool which you can use to find out if you are eligible to make a claim. You will need a self-assessment unique taxpayer reference in order to use the eligibility tool.
  • HMRC’s online claim tool is not yet open. However, HMRC says it aims to contact eligible individuals by mid-May to invite them to make a claim. You will be told straight away if your grant is approved.
  • HMRC is intending to make payments by early June 2020, within 6 working days of a claim being approved.
  • In order to be eligible, you must have:

    – Trading profits of no more than £50,000, which must be at least equal to your non-trading profits.

    – Traded in the tax year 2018/19 and submitted a Self-Assessment tax return for that year on or before 23 April 2020. HMRC will first check your eligibility based on this tax year. If this suggest you are not eligible, HMRC will look at tax returns for the preceding two tax years.

    – Traded in the tax year 2019/20 and intend to continue to trade in the tax year 2020/21.
  • In addition, eligible individuals can only claim if they their trade has been adversely affected by coronavirus. The guidance contains examples of when this might be the case, including if someone is unable to work because they are shielding or have caring responsibilities. You will be asked to confirm to HMRC that this criterion is met.
  • If you are told by HMRC that you are not eligible to make a claim, there will be a mechanism for you to ask HMRC to review this decision once you have used the online eligibility tool.
  • The guidance confirms that you can make a claim for Universal Credit while you wait for the grant. You can also continue to work, start a new trade or take on other employment.

If you are looking for support please email info@mooreandsmalley.co.uk and we will be happy to help.

Scams

There is an increase in scam emails, calls and texts. Eligible customers will be invited to claim through HMRC’s website, it is the only service they can use. If someone gets in touch with you claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as their name, credit card or bank details, you should not respond. It is a scam.

Contact details

Yvonne Coulston

Corporate Services and Agricultural Manager

T: 01539 729727 E: yvonne.coulston@mooreandsmalley.co.uk