Supporting Business Growth
Chancellor Rishi Sunak announced the new SEISS initiative to support people who are self-employed throughout the coronavirus outbreak. Here is our summary of what is available.
The SEISS will offer direct cash grants to self-employed people whose business have been adversely affected by Coronavirus. The support will last until August and will be open to any business that reports trading profits through the Self-Assessment tax return.
What do you need to know…
- From today (Monday 4 May), HMRC will begin contacting customers who may be eligible for the Self-Employment Income Support Scheme (SEISS)
- Those who are eligible will be able to claim a taxable grant worth 80% of their average trading profits up to a maximum of 7,500 (equivalent to three months profits), paid in a single instalment.
- The claims service will open on 13 May 2020
- The claims process will be very simple, and those eligible will have the money paid into their bank account by 25 May 2020, or within six working days of completing a claim
- You’ll be able to make a claim for a second and final grant in August 2020
Who is eligible…
- Individuals are eligible if their business has been adversely affected by Coronavirus
- Business traded in the tax year 2019 to 2020, and intends to continue trading, and they…
- earn at least half of their income through self-employment
- trading profits of no more than 50,000 per year
- business traded in the tax year ended 5th April 2019 and submitted their Self-Assessment tax return on or before 23 April 2020 for that year
HMRC is using information that customers have provided in their 2018 to 2019 tax return and returns for 2016 to 2017 and 2017 to 2018 where needed to determine their eligibility and is contacting customers who may be eligible via email, text message or letter
Get ready to make a claim…
HMRC is also inviting customers, or their agents, to go online and check their eligibility for SEISS.
In order to receive quick confirmation from the eligibility checker, individuals should:
- have their Unique Taxpayer Reference (UTR) and their National Insurance Number to hand
- make sure their details are up-to-date in their Government Gateway account
Once the online check is complete, those eligible will be given a date when they can submit their claim.
As ever, Adams O Rourke are here if you need any further assistance regarding Covid-19 business support.
Take care everyone!