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.

I don't think we supposed to notice that sleight of hand! But we did!

We'll have to wait and see what is said next!

So following Rishi Sunak's announcement in the Commons we're now up to 80% instead of 55% - for November, December, January. This is brilliant news but as has just been discussed we're still missing September and October, which would have been two months more at 60% (off the top of my head). Let's see what happens next, this seems to be very much a moving target and no doubt a well targeted announcement to keep people on board as we go into lockdown today. Until they actually launch the grant for applications on 30th November they can still change it.

Brilliant news.
Although such a bit of faffing about.

No! I don't think he has said that! It may be that he has confirmed that we wil get 80% for November only! Then 40% for December and January - so 55% overall!

I'm still reading round but the Express says this... The Sun has 80% of all three months, they also had some weird info about the claim date being in December!!!!!

Ah ha! A video.... End of March extension for furlough... up to 80% is employees!

SEISS confirmed Nov - Jan IS increased to 80% average profit, capped at £7,500

So yes.... great, but still excludes Sept and October!

So yes, definitely now 80% for November, December, January.

Fingers crossed they revisit September and October.

I've just noticed on the HMRC updated policy paper on SEISS that appeared today that it says the following.......

'The Self-Employment Income Support Scheme grant extension provides critical support to the self-employed in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021'

So in theory furlough is extended to the end of March and SEISS to the end of April. It's like they're picking words out of a hat.

Here is today's version of the policy paper.

www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension

Dear God! Can you imagine. SEISS covers April, all else stops in March.. the bashing we'll all be getting!

I notice the wording of who can claim has changed on HMRC site to "impacted by reduced demand"
"declare that they intend to continue to trade and either:
are currently actively trading but are impacted by reduced demand due to coronavirus
were previously trading but are temporarily unable to do so due to coronavirus"

I do not currently have reduced demand, apart from short decreases when lockdowns are announced ,
I am however affected by supplier price increases caused by Covid measures, which has increased my unit costs , I have been absorbing these costs so far, to remain competitive ,
Covid has reduced my profit margins but not demand
Reading this I don't think I qualify ?
Anyone with any advise?

@pobparker - the short decreases would qualify but more to the point you're being asked to consult a crystal ball here because the grant is available in advance rather than retrospectively. You've had no support during September and October and are being asked to consider what happened in November and guess what might happen in December and January. It's also not specifically comparative, as in 'less demand than lat year' or 'less than planned' and nor does it say how much demand needs to be reduced by or what constitutes demand - is it less income, less enquiries, less future bookings for later in the year that you'd expect to have now? Less demand because you've had to reduce the services or products you have to offer because of supply chain issues or lockdown restrictions? There's so many variables when it comes to self-employment across so many industries. Last time the details of what 'adversely affected' might mean (it was never actually defined) became more and more detailed once the actual claim portal was launched with updates and examples given by HMRC so I'd wait until they launch it and see what additional details they put.

@Snorkelface
Thank you - great advise
I will have to wait and see
it is just so difficult to quantify and if my part of supply chain shuts down again I will have problems
I don't want HMRC saying your turnover is the same so you were not affected by demand and ignoring my bottom line (profit)

Just had an email from hmrc saying that details of how to claim and eligibility will be published 23 Nov.

Me too @bookgirl1982. As communication from HMRC can be a bit erratic this is the email that's gone out.......

*In light of the increased restrictions needed to curb the coronavirus pandemic, the UK Government is introducing additional economic measures to support you.

Latest changes that may impact you

Yesterday, 5 November 2020, the Chancellor announced that the UK Government is increasing the overall level of the next SEISS grant from 55% to 80% of trading profits.

This grant will cover a three-month period from the start of November until the end of January. The UK Government will pay a taxable grant which is based on 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500.

The SEISS Grant Extension will last for six months in total, from 1 November 2020 to 30 April 2021. A further grant will cover February to April, as grants will be paid in two lump sum instalments each covering a three-month period. The government will set out further details, including the level of that grant, in due course. Full details on checking if you’re eligible for the current grant and how to claim will be published on GOV.UK week commencing 23 November.*

There's also a reminder to be vigilant about phishing emails and scams etc.

The grant increasing to 80% is excellent news but we've still had no support for September or October and it's being studiously ignored. The furlough scheme had 70% government support in September and 60% in October. If you're rattled by having 0% government support for September and October please keep up the pressure wherever you can, Twitter, your MP etc. They've already changed this grant a few times in terms of eligibility, claim date and two percentage changes and they still have time to make further changes if they want to.

Can someone just clarify for me when you actually receive the next grant? My understanding you can apply 30th Nov and it will be paid a week or so later, DH thinks he applies 30th Nov but will only receive it in Jan??

@3littlewords - at some point during his House of Commons announcement Rishi Sunak said we'd receive it in December. So the time line will be....... 23rd November the final details can be accessed on HMRC, 30th November the application portal opens (which may be phased like before to stop the website crashing so you may be told to come back a day or so later to put in your application) and then money should be paid out within a week as before.

Joining the thread. I’ve been worrying about whether I can/should claim this time.

I had a decently busy diary this month and December looks OK-ish, but no work at all is booked in for January at the moment. And because several of my formerly regular clients have been totally silent all year, the pool of clients from whom I might expect some work to come in and save me has really shrunk.

And as you’ve been discussing here, I do not have a crystal ball

I’ve been catching up on my tax stuff. According to my spreadsheets (monthly income/expenditure), I’m running at about a third less income than this time last year. That has been the case since July (barring 1 month where it was about 20% less rather than 33ish). March-June were dire. I can live on what I’m bringing in, I’m not desperate for the extra money, but actually when I look at it like for like against last year in this way - yes of course I’m impacted by reduced demand. I need to stop trying to ‘manage’ the situation and downplay it, and just take the next grant.

I bet men don’t ponder over this stuff half as much as women do. I explained all this consideration to DH and he replied ‘yeah, I know. That’s why I keep telling you to just take it’

@ShortSilence

Joining the thread. I’ve been worrying about whether I can/should claim this time.

I had a decently busy diary this month and December looks OK-ish, but no work at all is booked in for January at the moment. And because several of my formerly regular clients have been totally silent all year, the pool of clients from whom I might expect some work to come in and save me has really shrunk.

And as you’ve been discussing here, I do not have a crystal ball

ShortSilence

Claim it. You've worked, you've kept your accounts, filed tax returns and your business has been impacted.

This grant is there for you and me. I've just had my best month since this started (November). Two lucrative jobs in but I had no idea they were coming.

Prior to that, my last proper paid job was May 7th. I had a tiny job in July (would just about pay for a lavish shop), but other than that my sole income has been the SEISS grants, and I make no bones about the fact it's kept me afloat.

Everyone is so quick to criticise the government, but let's just pause a minute to acknowledge the fact that they have actually done something for the likes of us. They've also made the process of applying for and obtaining the funds, incredibly straightforward.

The impact on our self-employed status is not down to us. It's not downto the government. It's not down to our clients. It's down to a pandemic that none of us anticipated would have the impact it has.

I for one am incredibly grateful that Rishi Sunak has taken the likes of us into account. Without the SEISS grant I would have been on benefits months ago. I can't predict how much work I'm going to get. I've had a random good month (November) after several shit months.

The government are currently asking one question 'Has your business been adversely affected by Covid19 restrictions?' If the answer is yes, claim the fucking grant. That's what it's there for.

Now wavering again over what would be agreed as a ‘significant reduction’!

10/20/30%?
50%?

WHY is it so complicated!

Yes they seem to be putting quite a weight on the reduction in work. I was on maternity leave for the comparison period last year which makes it more complicated too.

I’m about £500 down in Nov 20 versus Nov 19. December will be similar and think Jan even more of a difference as it’s normally much lower but Jan 20 was an anomaly and a very good month - I imagine there’ll be quite a disparity between that and Jan 21.

I looked at Sep-Nov 19 versus Sep-Nov 20 last night and it’s almost £3,000 less this year. Every other year since I began trading in 2012 I’ve shown annual growth.

I really don’t want to get into trouble over it - but I think even though my losses aren’t huge, over the year they will add up and be significant to me?

Anyone done their claim yet today?

I had an email, which states I can claim from 04 December
"If you’re eligible, and in need of support, you’ll be able to claim the third grant at any time from 4 December until the end of January."

I did my claim this morning.

I didn’t have an email this time, but I signed in and was able to claim today.