SEISS

Wednesday 2 December 2020

SEISS 3 claims are now open

From 30 November 2020, taxpayers can apply for the third Self-employment Income Support Scheme (SEISS) grant. The portal opens in phases over the week.

The third grant is calculated as 80% of the average of three months of trading profits, up to a maximum of £7,500. Subject to eligibility, the third grant can be claimed even if previous grants were not. You must make your claim on or before 29 January 2021. To make a claim for the third grant your business must have been impacted by Coronavirus on or after 1 November 2020.

For further details on who can claim, what you will need to make a claim and how to claim the third SEISS grant please click here.

The conditions for, and the amount of, the fourth grant have not yet been announced. The fourth grant will not be available until after the filing deadline for 2019/20 self assessment tax returns, which opens up the possibility that the fourth grant may be available to those that started to trade in 2019/20 and the calculations may include income reported for that year.

The government has yet to announce a decision, but to avoid the risk of not qualifying for the fourth grant because the return has not been filed, it is important to ensure 2019/20 tax returns are filed by 31 January 2021.


 Thursday 26 November 2020

How your trading conditions affect your eligibility for the Self-Employment Income Support Scheme

HMRC has issued guidance on the third SEISS grant and specifically how trading conditions affect eligibility.

To be able to claim for the third grant, you must either:

  • be currently trading but are impacted by reduced demand due to Coronavirus
  • have been trading but are temporarily unable to do so due to Coronavirus

You must also: -

  • intend to continue to trade
  • reasonably believe there will be a significant reduction in your trading profits due to reduced demand or your inability to trade

You must also meet all other eligibility criteria to make a claim.

HMRC states that it expects SEISS claimants to make an honest assessment about whether they reasonably believe their businesses will have a significant reduction in profits.

Please talk to us about making a SEISS claim, we can work through your figures and make an accurate estimate of what you should expect.

Further information on the latest guidance issued by HMRC, including useful examples, can be found here.


Monday 16 November 2020

Tell HMRC if you’ve stopped trading and review your eligibility for the Self-Employment Income Support Scheme

If you received an email from HMRC, asking you to confirm if you’ve stopped trading, use this form so they can check if you were eligible for the grant.

You must complete the form on or before the 20 November 2020 to confirm whether or not you were eligible for the grant. You will not be able to make a further claim if you do not do this.

Once you complete the form, any further claim may still be delayed.

Penalties for not telling HMRC about Coronavirus (COVID-19) support scheme overpayments

If you've received a SEISS grant but were not eligible or you've been overpaid, read the new guidance to find out about penalties you may have to pay if you do not tell HRMC.


Thursday 5 November 2020

Government increases self-employed support

HMRC recently announced an extension of the Self-Employment Income Support Scheme to support self-employed individuals who are experiencing reduced demand or cannot trade due to the effect of Coronavirus. They then doubled the support from 40% to 80% of trading profits for November, which increased the overall level of the grant to 55% of trading profits.

On 5 November, the Government announced that they are increasing the overall level of the grant to 80% of trading profits covering November to January for all parts of the UK. This provides equivalent support to the self-employed as provided to employees through the government contribution in the CJRS. It is calculated based on 80% of 3 months’ average trading profits, paid out in a single instalment and capped at £7,500.

This is £7.3 billion of support to the self-employed through November to January alone, with a further grant to follow covering February to April. This comes on top of £13.7 billion of support for self-employed people so far, one of the most comprehensive and generous support packages for the self-employed anywhere in the world.

HMRC will pay this more generous grant sooner than planned and in good time for Christmas – the window for claiming a grant will open on 30 November, two weeks earlier than previously announced.

The Government has already announced that there will be a fourth SEISS grant covering February to April. The Government will set out further details, including the level, of the fourth grant in due course.


Tuesday 3 November 2020

Update on Government financial supports

Government increases support for self-employed across the UK

It was announced on the 2 November that the government is increasing its support to the self-employed over the coming months and ensuring people get paid faster than previously planned.

To reflect the recent changes to the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits for November.

To ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.

As SEISS grants are calculated over three months, the uplift for November to 80 percent, along with the 40 percent level of trading profits for December and January, increases the total level of the third grant to 55 percent of trading profits. The maximum grant will increase to £5,160.

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
    • are currently actively trading but are impacted by reduced demand due to Coronavirus
    • were previously trading but are temporarily unable to do so due to Coronavirus

Further details can be found here.


Friday 23 October 2020

Plan for Jobs: Chancellor increases financial support for businesses and workers

On 22 October the government announced it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected in the difficult months to come, supporting jobs and helping to contain the virus.

Self-Employment Income Support Scheme Grant Extension

The level of the third SEISS grant will be based on 40% of average trading profits, rather than the previously announced 20%, and will be capped at £3,750. The level of the fourth grant is to be kept under review and announced in due course. The grants are taxable income and also subject to National Insurance contributions.

Businesses temporarily unable to trade due to Coronavirus were to be excluded from claiming the third and fourth grants but will now be eligible.

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
    • are currently actively trading but are impacted by reduced demand due to Coronavirus
    • were previously trading but are temporarily unable to do so due to Coronavirus

HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.


 Wednesday 21 October 2020

Return to your claim for the Self-Employment Income Support Scheme

Use the online service to check the status of your payment, if you think the grant amount is too low or HMRC have asked you to update your details for your claim. Click here for further details.


 Wednesday 14 October 2020

Tell HMRC if you’ve stopped trading and review your eligibility for the SEISS

If you claimed a grant on the Self-Employment Income Support Scheme you’ll need to confirm with HMRC whether or not you’ve stopped trading. If you have stopped trading and permanently closed your business, HMRC will need to check if you were eligible for your grant. If you were not, they will contact you to arrange for you to pay it back.

If you have not stopped trading and not closed your business, you still need to tell HMRC. They may contact you to ask for evidence to prove you’re still trading.

When you must tell HMRC

This depends on the date you received your grant, so if you received the grant:

  • before 22 July 2020 you must tell HMRC on or before 20 November 2020
  • on or after 22 July 2020 you must tell HMRC within 90 days of receiving the grant

If you do not tell them by these dates, you may have to pay a penalty.

HMRC will contact you within 60 days to tell you how to either:

  • pay any amount due
  • provide information they need

Further details and a link to the form can be found here.


 Friday 25 September 2020

Extension of the Self-Employment Income Support Scheme

The existing self-employed grant (SEISS) will also be extended on the same basis as the job support scheme.

An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to Coronavirus.

The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April.

Further details can be found here.


Tuesday 18 August 2020

Self-Employment Income Support Scheme - If you think you were not eligible for the grant or have been overpaid

Payments under the Self-Employment Income Support Scheme (SEISS) are grants, not loans, so are not necessarily repayable. However, if you think you were not eligible for the grant or have been overpaid you should tell HMRC.

You must tell HMRC if when you made the claim you:

received more than HMRC said you were entitled to

and / or

were not eligible for the grant, for example:

  • your business was not adversely affected by Coronavirus (for claims under the first round of the SEISS, this was the period up to and including 13 July 2020. For the second round of SEISS, it is the period on or after 14 July 2020)
  • you did not trade in the tax year 2019 to 2020
  • you did not intend to continue to trade in the tax year 2020 to 2021
  • you have incorporated your business since 5 April 2019

It is necessary to pay back the grant even if the claim was made due to an inadvertent error, or innocent misunderstanding of the rules.

You can also tell HMRC if you want to voluntarily pay back some or all of the grant you received. You can do this at any time. This may apply if the business was adversely affected at the time of the claim but later recovered so that, overall, annual profits are the same or higher than previous years. You are not required to make a repayment but may choose to volunteer repayment of some or all of the grant.

When you must tell HMRC depends on the date you received your grant

If you received the grant:

  • before 22 July 2020 you must tell HMRC on or before 20 October 2020
  • on or after 22 July 2020 you must tell HMRC within 90 days of receiving the grant

If you do not you may have to pay a penalty.

Find out more here about when you may have to pay a penalty and other information, including:

  • how HMRC decides how much the penalty will be, which could be up to 100% of the grant amount
  • when you will not have to pay a penalty
  • how to appeal against a penalty

What you will need to notify HMRC of an overpayment

  • your Government Gateway user ID and password that you used when you made your claim
  • your grant claim reference - you’ll find this in the online service or on your copy of the grant claim
  • your Self Assessment Unique Taxpayer Reference (UTR) number - if you do not have this find out how to get your lost UTR

Please click here to notify HMRC of the overpayment.

What happens next

When you’ve completed the form, you will be given bank details to pay back the grant. You should print or save this page so you can make the payment.

HMRC will only contact you if they need more details or if there is a problem with your payment.

If you have any questions or are concerned about whether you were eligible or may have been overpaid by HMRC please contact us.


 Monday 17 August 2020

Self-Employment Income Support Scheme – the service to claim the second grant is now open

If you're self-employed or a member of a partnership and your business has been adversely affected by Coronavirus (COVID-19), on or after 14 July 2020, use this scheme if you're eligible to claim the grant. You must make your claim for the second grant on or before 19 October 2020. Claims for the first grant are now closed.

Who can claim

You can make a claim even if you did not make a claim for the first grant if your business has been adversely affected on or after 14 July 2020.

You must also meet all other eligibility criteria.

You should not claim the grant if you’re a limited company or operating a trade through a trust.

What you will need

You will need your:

  • Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
  • National Insurance number – if you do not have this find out how to get your lost National Insurance number
  • Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
  • UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
    • bank account number
    • sort code
    • name on the account
    • your address linked to your bank account

You must make the claim yourself. You must not ask a tax agent or adviser to claim on your behalf as this will trigger a fraud alert, which will delay your payment.

Please click here for further information or click here to start your claim.


 Tuesday 4 August 2020

Ask HMRC to verify you had a new child which affected your eligibility for the Self-Employment Income Support Scheme

If you’re self-employed or a member of a partnership, and having a new child affected the trading profits or total income you reported for the tax year 2018 to 2019, use this form to ask HMRC to verify that you had a new child.


Tuesday 14 July 2020

Summer Economic Update

On 8th July, the Chancellor Rishi Sunak made a speech entitled “Summer Economic Update” where he unveiled further Government supports and he unveiled the Government’s plan for jobs which he described as the “Second phase in the Government’s economic response to the crisis.” 

Please see our July e-news for the highlights on the following announcements:

  • Coronavirus Job Retention Scheme (CJRS) and Job Retention Bonus
  • Kickstart Scheme and Measures to Help People Find Work
  • Value Added Tax Reduced Rate for Hospitality and Tourism Sectors
  • Eat Out To Help Out Scheme
  • Stamp Duty Land Tax Holiday
  • Residential Rates on Purchases from 8 July 2020 to 31 March 2021

Wednesday 8 July 2020

Economic Update

Today the Chancellor, Rishi Sunak, set out plans for the next stage of our economic recovery. Important announcements:

  • Companies will receive a £1,000 bonus for each furloughed employee who is still employed as of 31 January 2021. 
  • From today until 31 March 2021, buyers will pay no Stamp Duty on the first £500k when they move home. Nearly 9 out of 10 people getting on or moving up the property ladder will pay no Stamp Duty at all.
  • The Government will cut the rate of VAT applied on tourism and hospitality related activities from 20% to 5% for six months.

More information on all the Chancellors announcements can be found here.


Monday 6 July 2020

How different circumstances affect the Self-Employment Income Support Scheme

The Government has updated the guidance for self-employed or member of a partnership to explain how certain circumstances can affect your eligibility for the scheme. Please click here for further information.


Tuesday 2 June 2020

Chancellor Extends Self-Employment Support Scheme

The government’s Self-Employment Income Support Scheme (SEISS) will be extended with those eligible able to claim a second and final grant capped at £6,570. This will give more security to individuals whose livelihoods are adversely affected by Coronavirus in the coming months. You do not need to have claimed the first grant to receive the second grant, for example, if your business has only recently been affected by Coronavirus.

  • Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
  • Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
  • The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by Coronavirus. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further guidance on the second grant will be published on Friday 12 June and we will keep you up to date with the details when we know them. See more details here.

No announcement or Grant was made at the daily press conference regarding Company Directors and those who became self-employed after April 2019.


Thursday 14 May 2020

Claim a grant through the Self-Employment Income Support Scheme (SEISS)

Please click here to access the SEISS portal for applications. This scheme is available if you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19). If you haven’t already, please check if you are eligible to claim a grant by clicking here.

Please note that for a small number of cases, the checker is giving an incorrect not-eligible result. In most cases this as a result of late filing of the 2018/19 Tax Return. HMRC is updating the system and those who may be in this situation should keep trying the checker.

The eligibility checker includes an option to request a review of not-eligible results. The review can be requested by the taxpayer or their agent. HMRC will start to consider review cases later in May, after the bulk of the claims have been made.

The level of grant will be automatically calculated by HMRC, individuals will not need to enter any figures or information about past income. Therefore a review should also be requested if you believe the grant calculated by HMRC to be incorrect, please note that reviews of this nature can only be requested by the individual making the claim, agents are currently unable to make these requests. Clients of Humphrey & Co should speak to their usual contact if they would like calculations checked for them.

Those who are digitally excluded and unable to claim online are expected to be able to make claims by phoning HMRCs SEISS helpline. HMRC recommend that, where possible, the webchat facility be used in preference to phoning, to help manage demand.


Wednesday 6 May 2020

Self-Employment Income Support Scheme (SEISS) Update

Following our update yesterday on SEISS, if you do not yet have a Government Gateway account, rather than applying for it separately, we suggest you wait until you apply for the grant. You should be invited to apply for such an account as part of the first step of the SEISS grant process.


Tuesday 5 May 2020

Self-Employment Income Support Scheme (SEISS)

Further guidance has now been issued by the Government in respect of the Self-Employment Income Support Scheme (“SEISS”).

HMRC will begin contacting individuals who may be eligible to receive a grant under the SEISS from 4 May. You may, therefore, have already received correspondence from HMRC. Once you have received confirmation from HMRC that you may be eligible to receive a grant you will be entitled to make a claim when the online system opens on 13 May. We understand, however, that HMRC are trying to stagger claim applications so the date you can claim from may be later.

It is important to note that we, as your agent, are unable to make the claim on your behalf.

We will, of course, be happy to assist with any queries you may have when making the claim or in assessing your eligibility for a grant.

What you will need to make a claim

The current guidance suggests that you will require the following:

  1. Your Unique Taxpayer Reference (UTR) (can be found on the front on your Tax Return)
  2. Your National Insurance Number (can be found on the front of your Tax Return)
  3. Your Government Gateway ID and Password
  4. Bank account number and sort code for payment

As you will see from point 3, it is important that you have a Government Gateway account setup in order to make the claim application yourself. If you do not already have a Government Gateway account you will need to register for one as soon as possible. To do this, please:

Eligibility

Ahead of receiving correspondence from HMRC in connection with the SEISS they are also inviting you to check your eligibility for a grant as follows - https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference.

You will be required to enter your UTR and National Insurance Number and will then be prompted to ensure your contact details are correct by logging into your Government Gateway account. This is also a good opportunity to create a new account if you do not already have one. Should you be entitled to claim a grant we understand that it will be paid into your chosen bank account within 6 working days from the date of the claim.

If you have any queries in connection with your eligibility for a grant under the SEISS following the completion of the above online check please do not hesitate to contact us.


Thursday 16 April 2020

Self-Employment Income Support Scheme

To find out how HMRC will work out your income and profits if you’re self-employed or a member of a partnership in the UK and have lost profits due to Coronavirus (COVID-19) click here.

Please note that the online service for accessing this scheme is not yet ready, and that HMRC are planning to contact eligible individuals by mid-May, with payments expected in early June.

If you are a client of Humphrey & Co and require any help with the scheme or would like copies of your last three years Tax Return’s please do get in contact with your usual partner.


Wednesday 15 April 2020

Genuine HMRC contact and recognising phishing emails and texts

Please beware of emails and messages pertaining to be from HMRC. Take extra caution at this time and do not click on links or share personal details. Please talk to us if you want to confirm whether any correspondence is genuine. Find out how to recognise when contact from HMRC is genuine, and how to recognise phishing or bogus emails and text messages by clicking here.


Back