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 wanted to add something that may clarity earlier discussions about setting up a gateway account - you need to also activate self assessment on the account. For this you will be sent an activation number in the post. I called and the woman on the phone told me not to forget this next step - activating self assessment within the gateway account (if you have previously used an accountant).

Hope this is helpful to someone :)

Thanks @ListeningQuietly

BateKush
Indeed.
I contacted all my SA clients last night and one who has never had a gateway account been self employed for decades
set up hers and checked her eligibility in 40 minutes

getting the money is still another whole bundle of hoops

@BateKush2020

I didn’t do that, previously I’ve used an accountant. Am I wrong or is it set up? I get this message when I log into Government Gateway.

(Name and UTR cropped)

washyourhands
Have you checked your eligibility.
If your account is set up right you'll be able to ....

Yes I have and it says I am.

Although saying that, it said I was eligible and then I set up the GG account.
Do I need to check it somewhere while I am logged in?

Thanks so much for your help guys, it’s invaluable.

Ok, I found it but I’m confused.

It wouldn’t take the old GG account (which my accountant uses) when I checked my eligibility the other day and made me set up a new one.

When I request access to SA on my new account I get this

Right this is a nightmare.

I checked eligibility using my UTR and NI number, said yes, eligible.

Tried then today to log in with my original GG Account, it said it wasn’t registered for self assessment (it only is VAT, my business tax return is declared as a partnership) anyway, it made me register a new one for both me and my partner (who never previously had a GG account) and I’ve been able to request SA Access on their account just now.

So now I am unable to register access for self assessment on either account of mine. Help? Do I need to ring HMRC on Monday? What a bloody nightmare.

I suppose I should have just logged into the original account and requested SA access and then proceeded? That is so not clear, even in the printed letter I received yesterday.

I emailed my accountant and surprisingly he just rang me.

He submits my tax return through his own software and his own account for all his clients with the corresponding references for each client. Obviously he can’t give me any details pertaining to that as it’s all his client’s data.

He also set me up a Moss VAT account on Government Gateway.

I set up my own GG account on Monday as it wouldn’t let me register for this on the existing scheme. I cannot add SA to any of my two accounts as it’s all done through my accountant as my agent.

Washyourhands - is this all for the grant claim? What happens when you log in to the portal they've set up for that? The bit where you check if you're eligible with your UTR and NI? Don't try logging in anywhere else.

Hi yes, it is. I’m all set up but according to PPs here I have to “register for self employed” on there as well. Well, I’ve discovered I have 2 Government Gateway accounts and I can do it on neither of them. I’ve stopped getting stressed about it now and going to ring HMRC on Monday. As far as I am concerned I set it up all correctly as per the info on the letter I received and nowhere on there did it say register for self employed on there so instead of working myself up over what someone on the Internet is saying I’m going to enjoy my weekend and work it out Monday,

The latest GG account has records of my NI paid going back my entire working life and recognises for the last ten years or so, the bulk of that came from self employment so I think I’m safe.

Actually, I lie I have 3, 2 for personal and one for Business Moss Vat. (Eu digital tax)

I've been told to log in on Wednesday 13th morning at 8am to see how much I'm eligible for...has anyone else had the same advice when logging in?

Hey Yerroblemom1923 - they're spreading the claim times over a few days - you look like you're one of the early ones. You can actually put in the claim rather than just find out the amount from that time so you'll need your bank details to hand when you log in and you'll need to confirm that your business/income has been adversely affected by the coronavirus outbreak. You should also be given a details of the grant you'll be awarded, hopefully with a breakdown of the figures. I'd take a screen shot or print of that out if you can and any reference numbers. It's a quickly thrown together system and there are bound to be glitches so grab whatever information is available. The grant should then be paid to your bank account within 6 working days.

Can the bounce back loan be used to pay off an existing business loan to relieve pressure?

Washyour
Its not a loan
its a taxable grant
its your money to do as you wish
but it has to go through your tax return as income

She's talking about Bounce Back Loans, not the SE grant. Might be some answers here @Washyourhands48

www.moneysavingexpert.com/news/2020/05/small-business-boost-as-bounce-back-loans-launched/

Unless you do mean the grant and are just getting the terminology mixed up? There are two things sole traders can access:

The self-employed grant, which is 80% of three months average earnings. This is taxable income, not a loan.

And the Bounce Back loans, which are government-backed loans of up to £50,000.

Ah, there's an answer from the Treasury on that link:

'Q. I have a small limited company that has taken out a bank loan at a high APR rate which I have to stand as a guarantor. Can I apply for a bounce back loan for the same amount to pay off the bank? A. "Yes"

Ah cool
I am loathe to contact the bank
I'm just spending a LOT less

waterjungle

My trading profits last year were 50,500. I felt sick to my stomach at first that this made me ineligible, but you are quite correct that the guidance states they will take the average of the last 3 years, where 3 years accounts exist. I earned a decent amount under in the preceding 2 years so my average annual income is under the limit.

When I logged in the site this week it said I was eligible and I have a day/time to make the claim.

So don’t discount it based on the most recent year being slightly over - definitely check why they are saying not eligible because it shouldn’t be that if it’s a similar situation to mine.

Has anyone else had this?

I am eligible to apply, so i set up my gateway account yesterday (following HMRC emai). Up until now i've completed paper Self Assessments, so didnt have one.
I got through it all, until they asked me a few additional security questions, which i completed.. then i was told i'd answered too many questions, and to try again in 24 hours! Have i got to do it all again i wonder?

Really confused, shall i just leave it until the 14th when ive been told i can claim?

Jelly
If you've done paper returns (which you will only be able to carry on if you have an exemption now) they may well give you a hard time
call them Monday

Thanks Listening, i've already had a letter saying my 2019/20 return has to be online, which is fine.. it all went through fine except the last bit, but i will ring them Monday and be prepared to spend the morning on the phone.