July 10, 2020
Yesterday the Chancellor of the Exchequer Rishi Sunak announced the Self-employment Income Support Scheme (SEISS). This will support self-employed individuals (including members of partnerships) who have lost income due to coronavirus (COVID-19).
This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.
You can apply if you’re a self-employed individual or a member of a partnership and you:
Your self-employed trading profits must also be less than £50,000 and more than half of your income comes from self-employment. This is determined by at least one of the following conditions being true:
If you started trading between 2016-19, HMRC will only use those years for which you filed a Self-Assessment tax return.
If you have not submitted your Income Tax Self-Assessment tax return for the tax year 2018-19, you must do this by 23 April 2020. Thames Williams can help in the filing of late Self-Assessments. You can book a call with us or share the link below.
HMRC will use data on 2018-19 returns already submitted to identify those eligible and will risk assess any late returns filed before the 23 April 2020 deadline in the usual way.
You’ll get a taxable grant which will be 80% of the average profits from the tax years (where applicable):
To work out the average HMRC will add together the total trading profit for the 3 tax years (where applicable) then divide by 3 (where applicable), and use this to calculate a monthly amount.
It will be up to a maximum of £2,500 per month for 3 months.
HMRC will pay the grant directly into your bank account, in one instalment.
You cannot apply for this scheme yet.
HMRC will contact you if you are eligible for the scheme and invite you to apply online.
Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.
You will access this scheme only through GOV.UK. If someone texts, calls or emails claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and asks you to click on a link or to give information such as your name, credit card or bank details, it is a scam.
Once HMRC has received your claim and you are eligible for the grant, we will contact you to tell you how much you will get and the payment details.
If you claim tax credits you’ll need to include the grant in your claim as income.
The government is also providing the following additional help for the self-employed:
Thames Williams and our partners can assist you in claiming any and all of the available reliefs and schemes. If you feel your business or anyone else’s could benefit from these schemes, please do not hesitate to contact us by arranging an appointment to book a call below.
If you’re a director of your own company and paid through PAYE you may be able to get support using the Job Retention Scheme. We are awaiting further guidance on this scheme and will update you once we have more information.
If you need any assistance from us or if you feel our services could benefit other businesses please use the book a call button below:
Thames Williams is more than accountants. We’re your business productivity suite and here to support all small independent businesses.
DISCLAIMER: This article is for guidance only, and professional advice should be obtained before acting on any information contained herein. Thames Williams cannot accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the content of this article.