Self Employed Income Support Update

Are you One of the 3.4 million Self-employed individuals eligible for the Income support scheme? Learn about the Covid-19 Self-Employed Income Support Update the Second Installment. The facts.

Did you know?

As at 30^th June 2020 75% have made claims totaling £7.4 billion. Construction Workers claimed £3.1 billion of this.

 

The  Self Employed grant scheme (SEISS) has been extended. If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020.

The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total.

As with the first grant HMRC will contact you if you’re eligible. They will work out your eligibility for the second grant in the same way as the first grant.

You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.

How the grant works

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work. The grant does not need to be repaid but will be subject to Income Tax and National Insurance and will form part of the Income of your next set of accounts.

Who can claim?

You can claim if you’re a self-employed individual or a member of a partnership and your business has been adversely affected on or after 14 July 2020.

Your business could be adversely affected by coronavirus if, for example:

you’re unable to work because you are:

• • shielding
  • self-isolating
  • on sick leave because of corona virus
  • having caring responsibilities because of corona virus
  • you’ve had to scale down, temporarily stop trading or incurred additional costs because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work
    • one or more of your contracts have been cancelled
    • you had to buy protective equipment so you could trade following social distancing rules

We recommend that you keep evidence to confirm your business was adversely affected at the time you made your claim.

All of the following must also apply. You have:

• traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
• traded in the tax year 2019 to 2020
• intended to continue to trade in the tax year 2020 to 2021
• carried on a trade which has been adversely affected by coronavirus

You cannot claim the grant if you trade through a limited company or a trust.

 

You must make the claim yourself. We as your agent or adviser cannot claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.

Deadline Date Eligibility

There is a deadline for claims being made. To claim the second and final grant you must claim on or before 19 October 2020.

and to claim you’ll need your:

• • 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

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.

How much will you get?

The second and final grant is worth 70% of your average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service from HMRC will tell you how your grant is worked out. HMRC will calculate the grant amount which will be paid directly into your bank account, in one installment. The online service is not available yet. If you’re eligible you’ll be able to make a claim for a second and final grant from 17 August 2020.

We can assist you although we cannot make the claim on your behalf so please contact us for guidance info@mcgintydemack.co.uk or call 01942322767. Or Contact us through our website