Self Employed Income Support Scheme
HMRC have issued further guidance on this scheme and this week they will start to contact Self Employed Individuals or Members of Partnerships who may be eligible for the scheme by letter.
HMRC have confirmed that Agents (i.e. Facts & Figures) will NOT be able to apply for this scheme on clients behalf and therefore you will require an individual government gateway to make your claim, if you do not have this you will need to apply to HMRC using this link HMRC’s login page ASAP. Please get in touch with us if you require assistance setting this gateway account up.
You can claim if you are a self-employed individual or a member of a partnership and you carry on a trade which has been adversely affected by coronavirus, provided:
you traded in the tax year 2018/2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
you traded in the tax year 2019/2020
you intend to continue to trade in the tax year 2020/2021
Your business could be adversely affected by coronavirus, if for example:
you’re unable to work because you are shielding, self-isolating or are on sick leave because of coronavirus
you have caring responsibilities because of coronavirus
you have had to scale down or temporarily stop trading because your supply chain has been interrupted, you have fewer or no customers or clients, your staff are unable to come in to work.
HMRC have today launched a tool where you can check your eligibility for this scheme which can be found here: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
You’ll need your:
Self Assessment Unique Taxpayer Reference (UTR) 10 digit number
National Insurance number
You can find both of these numbers on the last copy of your self assessment tax return, however If you have any issues, please do not hesitate to get in touch.
HMRC have worked hard to ensure they have identified the right people who are eligible, you can ask for a review, or we can do this on your behalf. Reviews will be looked at from 18 May onwards and an explanation of eligibility decisions will be provided by the end of May.
The online service you’ll use to claim is not available yet, however if you used the checker above and are confirmed as eligible you will be provided a date from when you can apply using the GOV.UK online service.
If you are unable to claim online an alternative way to claim will be available and details will follow soon from HMRC.
HOW WILL IT BE CALCULATED
This scheme will allow you to claim a taxable grant worth 80% of your average trading profits up to a maximum of £2,500 a month.
Average Trading Profits will be calculated by totalling your trading profits and losses of tax years 2018/19, 2017/18 and 2016/17 and dividing by 3.
When you make your claim, you will need your:
Self Assessment UTR
National Insurance number
Government Gateway user ID and password
bank account number and sort code you want the grant paid to
You will have to confirm to HMRC that your business has been adversely affected by coronavirus. Once you have submitted your claim, you will be told straight away if your grant is approved. HMRC will then pay the grant into your bank account within 6 working days.
HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate. We therefore strongly recommend that you retain details of your claim.
WHAT YOU SHOULD DO TODAY
If you do not have one, then start the process of applying for a government gateway today.
You must keep a copy of all records in line with normal self-employment record keeping requirements, including:
the amount claimed
the claim reference number for your records
evidence that your business has been adversely affected by coronavirus
You will need to report the grant:
on your Self Assessment tax return
as self-employed income for any Universal Credit claims
as self-employed income and that you’re working 16 hours a week for any tax credits claims