HMRC have brought forward the date from which claims under the Self-Employment Income Support Scheme (SEISS) can be made.
Claims will now be able to be made from 13 May 2020.
The claims will be made via your Government Gateway. If you don’t currently have a Gateway you can create one straightaway via the following link https://www.tax.service.gov.uk/bas-gateway/sign-in?continue_url=%2Faccount&origin=unknown then click on “continue to your account” where you will be asked to either enter or create your log in details.
Unlike the Job Retention Scheme for employers and employee’s, HMRC will be calculating the amount of the claims that can be made via the SEISS. It is possible to check via the following link https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference as to whether or not HMRC believe you are eligible and the date that you can submit your claim.
When you submit your claim HMRC will confirm the amount to which you are entitled.
If HMRC state that you will be eligible to make a claim but you don’t currently have a Government Gateway, then it is important that you set one up, via the link above, as soon as possible. Unfortunately, HMRC are not making it possible for us to submit claims via our client Government Gateway account.
The rules for eligibility are:
- You are a self-employed individual or a member of a partnership.
- You traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year.
- You traded in the tax year 2019 to 2020.
- You intend to continue to trade in the tax year 2020 to 2021.
- You carry on a trade which has been adversely affected by coronavirus
- Your trading profits for the 2018 to 2019 tax year were less than £50,000
- Your trading profits must be at least half of your total income in the 2018 to 2019 tax year.
- If you don’t qualify under 6 and 7 above HMRC have said you will qualify if your average trading profits for 2016/17, 2017/18 and 2018/19 tax years is less than £50,000 and more than half of your average total income.
If you qualify, the amount of the claim will be 80% of your average monthly trading profits and will be paid for 3 months as a single payment up to a maximum of £7,500 (£2,500 per month). Payments will begin to be received by 25 May 2020 or within six working days from the date you submit your claim.
Please note that the grant will be subject to both Income Tax and Class 4 National Insurance Contributions.
Please do not hesitate to contact our tax manager James Andrews at [email protected] if you require further assistance with any aspect of the SEISS.