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Self-Employed Income Support Scheme advice

Posted onPosted on 17th Aug

Chris Adkin, of Mansfield chartered accountants Adkin Sinclair, has given this further advice on the Self-Employed Income Support Scheme

He writes:

If you have successfully claimed the first SEISS grant you will probably have received an email from HMRC toward the end of last week informing you that the second grant will be available for claims with effect from today.

In case you have not received any reminder notifications, or if you did not claim the first SEISS grant and are eligible, you will be able to claim this second and final grant at any time from 17 August 2020 until the scheme closes on 19 October 2020.

The eligibility criteria remain the same as for the first grant but, in addition, you will need to confirm your business has been adversely affected by coronavirus (COVID-19) at any time since 14 July 2020. “Adversely affected” typically would mean that your business has experienced lower income and/or higher costs because of coronavirus (COVID-19) at any time since 14 July 2020. If you are uncertain and would like to discuss this with me, please let me know.

HMRC acknowledge that as you are the person who knows your business best, they expect you to make an honest assessment about whether your business has been adversely affected and there is no minimum threshold over which your business’s income or costs need to have changed. You will however need to keep a record of evidence of how your business has been adversely affected. (For full details visit GOV.UK and search ‘Self-Employment Income Support Scheme’.)

This second taxable grant is based on 70% of your average monthly trading profits (calculated by HMRC in the same manner as applied to the first SEISS grant) and it will be paid out in a single instalment. This will, therefore, be calculated at three months’ worth of average monthly trading profits and is capped at a maximum amount of £6,570.

How to claim
Search GOV.UK for ‘Self-Employment Income Support Scheme’. Claiming online is the quickest and easiest way to get your grant.

You make your claim in the same way as you did for the first grant and you’ll need the following to confirm your eligibility and make your claim:

National Insurance number – if you don’t know this, go to the HMRC app, your online tax account or ask your tax agent (if you have one)
Self-Assessment Unique Taxpayer Reference (UTR) number – you can find this on your Self-Assessment papers or from your agent
Government Gateway user ID and password – if you don’t have an account, or have forgotten your details, follow the instructions on GOV.UK by searching for the ‘self-employment income support scheme’. Please check your contact details are correct in your Government Gateway account.
Your bank account number and sort code. For a building society account, please include the roll number if you have one.

HMRC will also ask for the address your bank or building society account is registered to (i.e. your address, most likely your home or business premises and not the address of your bank or building society).

As before, HMRC will use the information provided in your previous tax returns to calculate the grant you are entitled to. You do not have to calculate anything but I would strongly advise that you take a copy of the screen that shows how HMRC have calculated your grant entitlement as you will not receive any further confirmation of this calculation.

Once you have submitted your claim and HMRC have verified it, the grant will be paid directly into your bank account within six working days.

Full details of the SEISS can be found at the following link: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

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