HMRC have released updated information with regards to the Self-Employment Income Support Scheme that we would like to bring to our clients attention. As per our e-mail of the 27th March, this scheme will allow the self-employed to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for 3 months, below is a reminder of the eligibility criteria:
To claim the grant the following conditions apply:
• Your 2018/2019 tax return must have been submitted.
• You traded in the 2019/2020 tax year.
• You are trading when you apply (or would be except for Covid-19).
• You intend to continue to trade in the 2020/2021 tax year.
• More than 50% of your income is derived from self-employment.
• Your trade has suffered as a result of Covid-19 i.e. you have lost income and/or incurred additional costs as a result of Covid-19.
In addition to the above conditions, those with trading profits above £50,000 per year will be excluded from the scheme. The £50,000 threshold applies if both of the two following conditions are met:
1. Profits in the 2018/2019 tax year are more than £50,000.
2. Average trading profits in the last 3 tax years are more than £50,000.
HMRC have released an eligibility checker https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference this will confirm if you can apply for the grant and the earliest date you can apply (which will be a random date between 13th May and 18th May). Please note, you will need your UTR and National Insurance Number to use the checker.
HMRC have prevented accountants and agents claiming this on behalf of our clients, this means that clients will be required to set up their own Government Gateway to make the claim. There is a useful video at https://www.youtube.com/watch?v=3X4oMjIY0Bs&feature=youtu.be explaining the process. If you don’t already have a Government Gateway for self employment set up, this can be done at the same time as using the eligibility checker above. Please note, you will need your passport or driving licence to hand to complete the set up. We strongly recommend you set up or check the details of your Government Gateway ASAP to avoid any delay in making the claim.
If you require our assistance in setting up the Government Gateway or assistance making the application please do not hesitate to contact us.