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.

Perfectly good reason MNnickname. HMRC website lists caring responsibilities because of coronavirus as one of the reasons your business could be adversely affected.

Received my bounce back loan money today. I’m not even entirely sure that I need it, need it, if you see what I mean. But there’s no payments and no interest for 12 months so I’m taking it now and putting it in my savings account and if I don’t need it I’ll pay it back before it becomes interest bearing. If I do need it, it’s there. It took me 6 weeks all in all to get it though so I’m glad I wasn’t desperate for it.

Also Martin Lewis has added some really good scenarios to his piece on MSE about eligibility for the grant. It makes it very clear for anyone who’s wobbling about whether they can apply again etc.

Eventually the technical issue which told DH was ineligible is sorted...but now having issues with ID verification. He doesn't hold UK passport... licence is out of date (application has been sent but they are not renewing) and for some unknown reason he keeps failing the questions, I dunno where they are getting info from!!

Has anyone applied by phone after having issues with verifying Id?

user147
Yes, one of my tax clients is like your DH
he ended up going up the food chain at HMRC until he got a named adviser (first name and last name) who pressed the right buttons in their system.

Try phoning at 4:45pm
you have a better chance of getting sane staff then

Thanks LQ....am so stressed out by it all.

user
If you want to PM with which question/s are causing the stress I am happy to look up what I think the issue might be
(I regard this thread as CPD)

I’ve been told in writing I’m not eligible as I appealed the online rejectIon. The letter states that in not eligible because the sum of my non-trading income for 2016-19 was more than my my trading profits.

I wasn’t aware this was the criteria for the SEISS.
Is this correct?

Hellenbach - unfortunately it is. It's caught a lot of people out as the big focus has been on the £50,000 upper limit but the actual wording on HMRC's website is 'Your trading profits must be no more than £50,000 and at least equal to your non-trading income'. If you click on the link below and scroll down to the Eligibility section there's an example of how they're doing the trading/non-trading profit calculation.
www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme

Snorkelface thanks for your reply. My income is so low, £11k from rental income and some benefits and £3k earnings.
It's so frustrating and feels unfair.

Here you go.............

www.moneysavingexpert.com/news/2020/06/i-am-self-employed-but-confused-about-whether-i-can-claim-my-bus/

The quote from Martin Lewis about you knowing better than anyone if your business has been adversely affected really is key. It's your business, you know it better than any one else and any example.

HMRC also updated its SEISS details recently too and added a table of examples - give that one a go as well.

www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme#adversely-affected-examples

@Snorkelface

Perfectly good reason MNnickname. HMRC website lists caring responsibilities because of coronavirus as one of the reasons your business could be adversely affected.

One of the reasons posited is shielding. Is this an acceptable reason for my DH to use if his wife is shielding?

Finished31 - the first question is whether the business has been adversely affected, so has he had less work or been unable to take on as much work for all or any of the time. If that was due to adhering to advice on households where someone is shielding then that would be a reason. It could also be for a whole host of other reasons. However if the business has not been adversely affected then there are no circumstances to consider and no claim.

He's a driving instructor so not worked at all. Boris said I they can go back (but nothing been said about guidance and PPE).

I'm extremely clinically vulnerable. Top of the list as well.

Forgot to add, some of his pupils are cautious and some not wanting to start up again.

finished
The business has been affected.
Therefore a claim is eligible.
Its taxable income so at least 29% of it will end up being paid back for most people

Thank you

Finished31 - you've got a multitude of reasons there, get that claim in. Remember there are two claims at the moment. The first one, which covers March/April/May, needs to be made by July 13 (so do it now, there'll be a flurry of last minute claimants which could clog up the website closer to the deadline). The second one will become available in August. If you think business may be very slow to get back up and running again there's also the bounce back loan scheme which might come in handy.

@snorkle
He already applied for the earlier grant and got it. Didn't think he would be eligible for bounce loan as 'no premises' so haven't bothered.

Thank you so much

The Bounce Back Loan is one which doesn't need a premises but is a loan rather than a grant so does need to be paid back - but the terms are very favourable. So if borrowing is the only way to get to the other side of this or if you know you'll have business costs coming up which might now have to involve expensive finance deals due to lack of cashflow it could be a good option. Sole traders can also apply. I think November is the cut off for the loan at the moment

Here's the link......

www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Thanks snorkel, will have a look

Bounce back loans are FAB
so easy to claim
such good terms
definitlely worth doing if all else fails

Just a reminder that if you are eligible but haven't yet claimed the first SEISS grant time is running out. The first SEISS grant can only be claimed up until July 13th.

The online service to claim the second and final grant will be available from 17th August. You can claim the second grant regardless of whether you've claimed the first grant or not. You just need to be eligible as before.

HMRC have updated the examples for eligibility again in the last few days. If you're not sure if you can claim have a look at these two sections of HMRC's website. The rules are still the same, they've just given a few more possible scenarios. Only you know if you've been adversely affected and as before you don't need to have completely stopped trading to qualify.

www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
('Who Can Claim' section is about a third of the way down)

www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme#adversely-affected-examples

Rishi Sunak is still adding to the funding needed to keep the country working and spending. At least some of these additions are due to ongoing campaigning from trade bodies, members of the public, MPs and parliamentary committees. If you're someone who hasn't been able to claim adequate or any support so far please keep applying pressure via social media, your MP and being generally a bit shouty etc. And please don't rule out the Bounce Back Loan, it's debt (bad) but you can just give it back within 12 months without interest if you don't end up needing it (good) and only pay minimal interest if you do (no so bad at all).