Self-Employed HMRC update

[Snorkelface]

HMRC has added a few updates for the self employed grant scheme.

www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

While HMRC will be contacting eligible claimants directly over the next couple of weeks with more specific details you can now see if you're eligible to claim and what date you'll be able to lodge your claim by using their on-line tool (about half way down their web page).

You'll need your UTR and NI number to do this and it will also give you the opportunity to set up your Gateway account if you don't already have one and to update your contact details. It's a good idea to set this up now as the website is likely to get very busy when it goes live on 13th May.

You can find both your UTR and NI number on your tax return. If you're setting up your Gateway at the same time you'll need to provide email/mobile details and you'll need to set up additional security measures to identify you using either security questions or drivers license details or your passport. The system can time out so it's a good idea to have all the details to hand.

Do tell ?

I had forgotten the first two years we were partly employed - and so even though this employment ended a couple of years ago, it has obviously brought down the average.

Opps.

They take off tax and NI remember.

Did DH's yesterday, money as expected and all sorted within a few minutes. The only confusing thing was I accidentally came across the link to apply, there was nothing there when I logged in to GG.

I am so grateful to get this payment. At the beginning of this, we were prepared to get nothing and it was a stressful time. Now we have a lump sum to get by on and although we'll all pay in the long run, it really is welcomed now.

Just done mine, forgot gateway password and no way to reset, you have to open a new gateway account, which involves a code text to you and details from your passport (I chose passport it could be driving licence).
Then queried my address...entered manually and all ok...phew

Can I ask a question? My husband did his this morning and got told the amount all good.We know it needs to be noted in his 20/21 tax return but has the amount already been taxed or do I need to save some of it for tax purposes? Thanks

Just for clarity the grant you receive will not have had any tax or NI deducted already. The money you receive will need to be declared as income on your 20/21 tax return and will be subject to tax and NI at that time.

@Vegena Easily done! At least you know the figures are correct.

Ah ok thanks

I’m sure I read it was subject to tax and NI when I went through it. But I’m probably getting mixed up with the UC payment.

Sorry to confuse.

Does anyone know where we enter it in to our TR? Is it just income or does it go in a different section? Maybe they’ll add a new question to the TR.

Did mine yesterday, the hardest part for me was getting in; so many passwords and numbers to find.

The application only took a few minutes, said the amount I was to receive which I roughly expected and got told it would be with me in 6 working day. A relief as my overdraft is on petrol fumes right now.

Are any of you also looking at using the bounce back loans? I’m considering applying as I really don’t think we will get any other payments after this and I’ve just had some work that I was expecting to go ahead in June as planned, postpone until the end of the year because if the virus. I’m getting twitchy about the longer term.

@dontrainonmyparade I did. Took minutes to apply. Not a proper form just a couple questions. Money in account within two days. Am still a bit weirded out that I didn’t get any approval letter or loan agreement sent after the first instant ‘you have applied and we will process’ email but the money was deposited so that was my main concern really.

MaddieElla - it is subject to tax and NI but when declared as income in your 2020/2021 tax return.

I have been so badly hit by this that it is very unlikely that I will be paying that much tax in 20/21 so they won't claw much of it back that way, I don't think.

Mimble - I'm with you on that one.

It's worth noting that the personal allowance will also be stuck at £12,500 for 20/21. We're all used to it creeping up every year so we get a bit more in our pockets before tax kicks in but it's currently frozen because the government hit it's target of bringing the personal allowance up to £12,500 a year early. So no one's lost out but the usual increase won't be there, unless they change this.

January is the most worrying time for me when I'll be forking out all of the tax for 19/20. It was a good year until the end!

Thanks @Bimbleboo - I’ll hold on and see how things go for another month or two if it’s fairly quick and easy to do.

Applied for UC and received one payment. Applied for grant today. Will UC be reduced next month?....I'm confused and very new to this.

Same here mimble. Can't see my two biggest clients needing me at the same level anytime soon

On the tax return, for those doing simple 3 line self assessment it will get added into turnover

and YYY
the grant is based ONLY on your self employed income
so PAYE, investments, property etc
DO NOT count towards the 80%

Anyone who claimed on Wednesday not got their money yet? Am now a bit paranoid something has gone wrong!

bookgirl - on the statement which confirms what your grant was it says: "Your claim will be checked and your grant paid in the next 6 working days."

So give them a chance, it's hardly even been 48 hours if you did it on Wednesday. Tomorrow and Sunday won't count so you are looking at mid next week.

I know, it's just I've seen lots of people saying they've got theirs already!

440,000 people signed up on the first day!

@bookgirl1982 I did mine Weds and not been paid yet. I really wouldn't worry. If there was an issue I'm sure you would get an email / they would contact you. Otherwise probably working through all the payments at the moment.

Finished31 yes you need to declare it as income to UC just sign in and look for income, you get a reminder anyway to declare any self employed earnings.