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Good afternoon,
HMRC have announced more detail concerning the Self-employed Income Support Scheme. With effect from 4th May 2020 you can use the online tool to find out whether you are eligible, and we are using this update to explain the application process, rather than the detail of the scheme. Please therefore read this update in conjunction with Update No.7 on 27th March (Click here to view), and Update No.10 on 3rd April (Click here to view), in order to understand the scheme in detail.
We also want to take this opportunity to ensure that everyone who intends to submit a claim takes every precaution with regard to the security of their claim. This scheme is open to serious attempts at fraud, and we emphasise the need for caution at every stage.
Self-Employed Income Support Scheme (SEISS)
In brief, the scheme offers a grant to self-employed people, and based upon 80% of their profits averaged over the last 3 years, up to a maximum of £7,500 in total. You can claim if you are a self-employed individual, or a member of a partnership. Please note that profits must constitute at least 50% of the taxpayers total income. “Total Income” is defined as the sum of all key classes of income, and which is likely to correspond with the total income received as shown on the tax return. In order to understand how HMRC works out the applicable Trading Profits, click here. If you receive a grant you can continue to work, start a new trade, or take other employment and the grant is subject to Income Tax and self-employed National Insurance.
The SEISS application portal will open to taxpayers on a staged basis from 13th to 18th May, with different days for different taxpayers. The days are randomly allocated by HMRC and are not on a first come first served basis. If your claim is approved you will receive your payment within 6 working days
How to apply
In order to be able to submit a claim you will need:
- Self assessment UTR - your UTR can be found on all letters received from HMRC
- National Insurance number
- Government Gateway user ID and password - if you do not have a user ID, you need to create one now. To create a Government Gateway account click here and select 'create sign in details'. You can also find out how to retrieve forgotten login details from this link.
- Bank account number and sort code into which you want the BACS payment to be paid.
You will also be required to confirm that you have been affected by coronavirus. HMRC will check claims and take action to withhold or recover payments found to be dishonest or inaccurate.
Currently HMRC have only released details of how to apply online, further information regarding alternative methods are expected soon.
Your tax agent, accountant, or adviser are not permitted to make a claim for you, but you will be able to send a copy of the calculation to your agent to review.
Eligibility
You are able to check your eligibility for the scheme by using HMRC's online tool here. You will need the following to check your eligibility:
- Self assessment UTR
- National Insurance number
If you are eligible you will be notified of a date from which you can submit an application. If you are not eligible but think you should be then you can request HMRC review your application. You can also set up a Government Gateway account from this tool if you have not already set one up.
WARNING!
This Scheme may become a target for fraud. If you receive texts, calls or emails claiming to be from HMRC, offering help or a tax refund and asking you to click on a link or to give personal information, IT IS A SCAM. You should email it to phishing@hmrc.gov.uk and then delete it.
The scheme is NOT open yet and taxpayers are being asked NOT to contact HMRC. HMRC are this week starting to contact people through a combination of emails, SMS texts and letters to tell them what to do in order to claim. NB This contradicts our warning above, so please be very careful before providing any personal or financial information. Only provide bank details through the Government Gateway and DO NOT send via email or text.
Finally, the SEISS follows a logical step by step process and is governed by a strict timeline of dates. We all need to be patient whilst we try and gather all the information and have it ready when required. There is no opportunity to fast track or leapfrog applications, and so the most important thing to remember is to have all the information ready, keep an eye on emails and texts, and to be ready to respond when contacted by HMRC.
Best wishes
Mitchell Meredith
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