Launching Today the Self-Employment Income Support Scheme for Sole-traders and those in a Partnership whose business has been affected by coronavirus.
This Scheme is designed to match the support being given to furloughed employees.
Those able to make a claim have already been contacted by HMRC and can use a unique reference to make their claim.
The scheme will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether. This is a temporary scheme, but it may be extended.
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
The grant does not need to be repaid but will be subject to Income Tax and NI.
You can claim if all of the following apply:
- 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
To work out your eligibility HMRC will first look at your 2018 to 2019 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
If you’re not eligible based on the 2018 to 2019 Self Assessment tax return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then we will divide by 3.
The grant amount HMRC works out for you will be paid directly into your bank account, in one instalment.
Before you start:
You should check if you can claim a grant through the Self-Employment Income Support Scheme, and find out when you’ll be able to make a claim.
You’ll need your:
- Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
- National Insurance number – if you do not have this find out how to get your lost National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account
How to claim:
As your tax agent or adviser MJB Avanti cannot make the claim for you. You must make the claim yourself. But we are here to advise you and support you.
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
After you’ve claimed:
HMRC will check your claim and pay your grant into your bank account in the next 6 working days and will send an email when your payment is on its way.
Record keeping and reporting:
You must keep a copy of all records in line with normal self-employment record keeping requirements, including:
- the amount claimed
- the claim reference number
You should also keep any evidence that your business has been adversely affected by coronavirus such as:
- business accounts showing a reduction in turnover
- confirmation of any coronavirus-related business loans you have received
- dates your business had to close due to lockdown restrictions
- dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures
How different circumstances affect the scheme:
- if your return is late, amended or under enquiry
- if you’re a member of a partnership
- if you’re on or took parental leave
- if you have loans covered by the loan charge
- if you claim averaging relief
- if you’re non-resident or chose the remittance basis
- state aid
If you need help with any aspect of claiming under the SEISS, please call MJB Avanti (08000) 388 799