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.

Just a reminder that anyone who hasn't yet claimed the first SEISS grant and thinks they're eligible you have until the 13th July to claim. The first SEISS grant covered March/April/May.

You're eligible if your business has been adversely affected by coronavirus. This doesn't mean you need to have stopped trading completely or not received any income during this time and you can still working. You're eligible if there has been any scaling down of your business. This could be due to childcare commitments or a period of self-isolation or because you've had fewer clients or bookings or if your supply chain has been interrupted.

The first grant pays out a single lump sum of 80% of your average trading profits for three months based on 16-17, 17-18 and 18-19. The maximum pay out is £7500

The second and final grant will be available in August (date to be announced) and covers June/July/August. Again it will be a lump sum based on an average three months but reduced to 70% of your trading profits with a maximum payout of £6570.

You don't have to have claimed the first grant in order to claim the second grant in August.

You can also defer your tax payment on account in July if you want to. You don't have to do anything, you just don't pay it. If you pay by direct debit and want to defer please contact your bank to stop the direct debit. Do that asap. You'll need to pay the deferred amount in January 2020 along with any other tax you owe for 19-20, which may sting quite a bit.

For further details click on the link to HMRC
www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

My DH is eligible for grant... however website says he is not. We got the letter to confirm his eligibility, several calls to HMRC have also confirmed with promises each time it will be escalated up and someone will call him. They never call!
He chased x3 and he has to explain everything again...told someone will Call...no one can understand why it is coming up that he is ineligible but until it is fixed we can't get anywhere! We really need the money! I am starting to worry now we will miss the cut off even though not his fault.

someone I work with, we are SE, kept trying and it kept coming up ineligible, it turned out her UTR had been changed and she hadn't been advised. Not sure how you would check this, but worth looking into

@ThePittts I will get him to look into that. Thanks!

Thanks for your updates @Snorkelface this thread has been so helpful.

Just to add if anyone is in my position (at the start of claiming maternity allowance) and wondering if you can claim the SSEIS at the same time you can.
I've spoke to HMRC and DWP today and neither claim effects the other and it's fine to claim both at the same time.

Ah, great bits of advice there, do keep posting them. I was having a look on Twitter yesterday and while many have had a very smooth ride getting their claim processed there are still a lot of people out there not getting responses from HMRC about reviews or not finding clear enough advice on HMRC's website for their particular circumstances. I did notice one person copying their MP in to their Twitter complaint about their review and the MP has picked it up. Who know how much sway their MPs involvement might have but these things are always worth trying. Another is to complain in writing and get the letter signed for at HMRC. It's usually just an HMRC stamp rather than a signature but it's dated which means they can't claim you've missed a deadline to contact them. Sometimes it's the small things.

In the meantime anyone who like statistics and a graph or two (me!) here's a recent publication from HMRC about the SEISS claims made so far......

assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/891603/SEISS_Official_Statistics_June_2020.pdf

The main thing is that if your SA302 from 2019 shows you are eligible
DO NOT accept HMRC rejecting you until you have spoken to a named officer to run through it.

I am eligible, when I go on the website link and input my UTR and NI number, it says I am eligible. Then it asks me to sign in with Government Gateway account (created an account) after which it says I am not eligible. My accountant had it reviewed and we received confirmation we are eligible and to try again but still receiving same as above. Any suggestions? Thanks in advance

Hi everyone, this is from Money Saving Expert. It clarifies who is eligible for second grant. Your business needs to be affected from 14th July onwards! (not prior to this for second grant) So it may impact some businesses which may have normalised before then which now may not be eligible for the second grant. It is slightly changing the rules around application:

"New. Government to pay out second (and final) SEISS grant in August
Applications for the second grant will open in August. While it works exactly the same as the first grant, it'll be worth 70% of average monthly trading profits, paid out in a single instalment - though this time it'll be capped at £2,190 per month, or £6,570 in total.

You don't need to have claimed the first grant to receive the second grant. The eligibility criteria are the same for the second grant, see above, as for the first.

But you will need to confirm your business has been adversely affected by coronavirus on or after 14 July to claim the second grant.

This rule is somewhat bizarre. The Government's own press release from 26 March stated: "The income support scheme... will cover the three months to May," ie, March, April and May. Logic (and basic counting) therefore suggests the second three-month grant covers June, July and August.

So it's very strange to read the new rule that says you have to declare your business was impacted after mid-July, and we think it's unfair on businesses heavily impacted in June but are recovered by then.

Having spoken to HMRC, apparently the grants don't now relate to a specific three-month time period, they are just grants - though based on three months of trading profits.

But the rules ARE simple. The first grant is for those whose 'business was impacted by Covid-19 before 13 July and the second, which comes in August, for those 'impacted by Covid-19 on or after 14 July'. If impacted before and after the dates, you are due both."

Although if the grant related to three months from 'on or after 14th July' it would neatly take it to October, more in line with the furlough scheme. Like we'll think it was the same as being furloughed? It's such an odd update. Must remember to polish off my crystal ball on 14th July to check on how my business will be affected after that date. I'm currently predicting they'll change the info on the SEISS page again before then.

I think it's a cheeky way of cutting back on self employed support as far as they can.

So thats the answer to me not being able to apply, i am an hairdresser not allowed to work until after 4th july. Very sneaky of the government this is. Fair enough i got the may payment but that doesnt make up for june and beginning of july and the fact i went three full month without a penny. The guidelines put in place means i can do less clients a day then i would have before corona so i am already going to be suffering finanically but not be able to apply. Seems very unfair. Thank you for posting this information though xxx

The SEIS scheme just asks have you been impacted
do not over think this

the answer is
of course we blerdy well have
find me the business that has not

CLAIM the grant
And then it goes into the taxable income
-or lack thereof

Lilmissmissy - why can't you apply for the second one? You've said you can do less clients a day so you'll be suffering financially, so you will still be adversely affected. Your business doesn't need to be shut.

myjobismum - you can still work/trade and be able to claim the grant. As long as you meet the qualifying criteria in terms of tax returns, self employment etc and you have been adversely affected then you qualify. You can still be working and earning. Did you claim the first grant?

Thanks @Snorkelface i just assumed that as hairdressers are allowed back after 4th they would not give it to us. But will be applying again absolutely xx

I wonder if anyone could help. My DB is a self employed driving instructor who has been operating for approx 18 months. He lives with his partner. HMRC have told him that he is not eligible for any help at all (grants or UC), how can this be right?

4catsand1dog - the system is particularly harsh on anyone who only became self-employed recently - and no, it's not right at all. I know it's not the same thing at all but there's still bounce back loans (unsecured and sole traders can get them too) and tax deferral which may help your DB in terms of cash flow. However it may not be over just yet. Many of those who have been excluded from grants for one reason or another have continued to campaign for financial support and this week the Commons Select Committee published their findings into the failings of the government to support everyone and their call for action. Here is a link, for what it's worth, not really bed time reading..........

www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news-parliament-2017/economic-impact-of-coronavirus-report-published-19-21/

Morning! I received my usual HMRC Self Assessment Statement this morning, which shows the 2nd payment on account due for my 19/20 tax return. This would normally be paid to HMRC in July. If you also you get one of these by post or email remember you can defer this payment if you want to until 31st January 2021. You won't be charged any interest or penalties for doing so. If you normally pay by direct debit and want to defer you need to contact your bank to stop the direct debit asap or HMRC will still take the payment. If you usually pay by BACS and want to defer you don't need to anything, just don't pay it. There is a COVID 19 information message on the statement, the link it refers to is this one..........

www.gov.uk/guidance/defer-your-self-assessment-payment-on-account-due-to-coronavirus-covid-19

Snorkel
Good to know they are sending them out on time

and for those who CAN easily pay even part of it, its still worth delaying
as goodness knows what will happen this autumn !

I agree. We're in unchartered waters. If anyone has got their tax money sitting there for July it's definitely worth hanging on to for now as a fall back if things don't pick up. HMRC won't be interested in it until January. Tuck it safely away or see if it's more useful spent elsewhere, especially if you're paying high interest on anything. Alternatively shove it in premium bonds until January, you can get it back easily if you need it before then. And you might win the big one, imagine! I'm still wondering if they'll bring in further concessions in January for tax bills, especially for anyone who couldn't get the grant. Fingers crossed.

I admit, I'm paying my CT bills
but that is coming out of what would have been my holiday budget
and I've done my own cashflow projections to next March
accountants love our spreadsheets

For all of my clients I am suggesting

• take bounceback if you can and use it to pay down high interest debt

and then save save save

Spend what you NEED
Earn what you CAN
and assume that Brexit will make it worse

@ListeningQuietly

The SEIS scheme just asks have you been impacted do not over think this

the answer is
of course we blerdy well have
find me the business that has not

CLAIM the grant
And then it goes into the taxable income
-or lack thereof

THIS x 100

I’m claiming purely because I can’t work as many hours due to childcare issues.