HMRC has said it’s aiming to contact all self-employed workers eligible for the Self-employment Income Support Scheme (SEISS) by the middle of May.

The scheme will allow eligible applicants to receive a taxable grant worth 80% of their trading profits, up to a maximum of £2,500 a month. It can be claimed for an initial three-month period, starting from 1 March 2020, providing trading profits were less than £50,000 in 2018/19.

For tax returns dating back longer than that, average trading profits of less than £50,000 from between 2016 and 2019 are used.

Profits should also constitute more than half of a self-employed individual’s average taxable income in the same period.

The grant is subject to Income Tax and National Insurance contributions but doesn’t need to be repaid. If you receive the grant, you can continue to work or take on other employment including voluntary work.

Payments are expected to reach accounts by the beginning of June.

 

Who’s eligible to claim?

If you’re self-employed or are a member of a partnership and you’ve lost profits due to COVID-19, you can claim for the SEISS if you:

  • Have submitted your self-assessment tax return for the tax year 2018 to 2019.
  • Traded in the tax year 2019 to 2020.
  • Are trading when you apply or would be except for coronavirus.
  • Intend to continue to trade in the tax year 2020 to 2021.

If you haven’t submitted your self-assessment tax return for the tax year 2018 to 2019, you must do so by 23 April 2020 or you won’t be able to claim.

 

How do I make a claim?

HMRC will invite you to claim using the GOV.UK online service. If you’re unable to claim online, an alternative option will be available.

You will only be able to claim using the GOV.UK online service. If you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it’s a scam.

Speaking about the scheme, Jim Harra, chief executive at HMRC commented:

“We have the data to calculate most people’s entitlement, but we need them to say whether they wish to claim as it’s only open to those affected and we will need their bank details.”

He continued:

“If we can make the payments earlier, we definitely will. But mid-May is likely for when people will be able to claim.”

 

If you would like further information about the SEISS, please don’t hesitate to get in touch and we’ll be happy to help.

 

 

 

To read news and blogs from Rebecca Austin, click here >>

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