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.

OP you dont have to wait till January to submit your tax return for 19/20 you can do it now but payment doesnt need to be made yet if you owe tax.

It's the tax payment in January not the submission that'll be the problem.

Yup,
people deferring stuff are possibly storing up nasty problems.
I'm encouraging clients to budget to stay up to date if they can so it does not bite them later

Thanks Allsorts

Whether I pay my tax ASAP or defer I still keep 20% of everything we bring into the household aside for tax. It would be a real a emergency to dip into that.

Rivia
I never recommend paying tax early
personally I pay mine at 5pm on the 29th ;-)
BUT
if people take advantage of the July deferral, they are storing up problems for January

ditto VAT
it does not go away, its just gonna bite folks in the bum in the winter
and mortgages
and loans
and the rest

ALSO
it is very very likely that taxes will have to rise (worldwide) to pay for the bailouts
so for once moving income forward rather than backward may pay off

Talk to your Accountant

I take your point totally @ListeningQuietly. I always do my return early though (is have it with my accountant now if my DH has produced the only bit of
Paperwork that's his responsibility...). Once I know what I have to pay I usually scoop the excess savings back for us to spend.

DH has a ltd co so I do the same for business. Over save on tax and vat and when I pay we get a little boost.

I used to work with barristers and the number who would not save for their tax and just get loans to pay it every year was ridiculous.

Hi all,

Have read through the thread in a state of mild panic, as I went through the system and was classed as ineligible. The only thing that I can't rule in or out as the reason is the "50% rule" I keep seeing mentioned. I just can't get my head around it! Can anyone explain, please?

Something about trading profits and total income? Help.

Essential - if you have other income greater than your self employment profit it makes you ineligible.

Usually I'm the same but on this occasion I'm holding back the July money for cash flow emergencies in the coming months. Fingers crossed there won't be any and if there is an extension I'll probably change my mind and pay in July. It's peace of mind.

In other news I just won about £4.00 about the Euromillions, sorted!

I save my tax money in premium bonds. I’m leaving there until January, cos it might make me a millionaire right?

I mean it probably won’t, but I love the idea that by keeping it there it might...

Just a quick question. My friend is self employed as a cleaner, none of her clients have paid her throughout lockdown.
She successfully made the claim for the grant yesterday. She wants to know:
If the period it's covering was end March- end of June or end March to end of May.
Because she says she stopped working before the lockdown day (people wouldn't let her come into their houses before) but now some want her to go back to work. So she wants to be sure she won't get penalised and overpaid for
a) stopping work before lockdown
b) returning to work if she's been paid this grant (if it covers til end of May & she goes back now)
Sorry I'm as confused as she is!

Pinkrocker - it's fine to take on work. The grant covers March/April/May but the self-employed can continue to accept work. It doesn't make any difference to the grant at all.

Thanks witch. Hmm. I’m not sure; one for me to check tomorrow I think.

Thank you so much @Snorkelface. I'll pass that on!

Just claimed mine - it said 8am but figured I would try anyway. All very straightforward and as expected!

Good to hear ScarfLadysBag!

For everyone else claiming today hope it goes smoothly and let us know how you get on.

if people take advantage of the July deferral, they are storing up problems for January

Totally agree, I've been doing my best at talking clients out of this. January is never a good month as is it, let alone catching up with another payment.

I applied on Wednesday and got the grant this morning. Impressed at how smoothly it all worked for me at least

Bimbleberries, I think you're the first one on here to have actually received it.

I'm impressed with the whole thing too and the furlough scheme was pretty slick as well. My brain doesn't know how to process such positive thoughts about HMRC!

@snorkelface I can’t deny, I didn’t think it would actually happen.

My brain doesn't know how to process such positive thoughts about HMRC!

🤣🤣 agree! If this is the new normal HMRC I'm happy!

@Snorkelface just goes to show what can be achieved. When the rules are clear. If this isn't evidence for simplifying the tax and benefits system I don't know what is.

It's all usual such a tangle with rule on rule on rule built up over the decades

I think there's some confusion here between the grant of 10k, and the other SE help, direct from HMRC that only kicked in recently., and for which people are now applying now.
The grant is not a variable, +is issued direct via the local council and is not subject to much more than proof of trading as SE, + that your trading has been affected ( to put it simply). This is why people have received some money already, the HMRC help is only starting now.

The grant being discussed above is the SEISS grant which people have only been able to apply for since 13 May and the first applicants are now starting to receive the money (within 6 days as stated by HMRC). This is calculated by HMRC based on your self assessment returns.

The £10k is the Small Business Rate Relief grant which is something different and only applies to small businesses with premises who already qualify for rate relief. That scheme was started much earlier.