Here we go again..
So there have been some further updates!
See below a summary, which we feel gets over the most relevant points in the most succinct way.
Firstly, we would like to make it very clear that the ‘Self- Employment Income Support Scheme (SEISS)’ does not apply to anyone who has shares in (and trades through ) their own Limited company.
Self-Employment Income Support Scheme ( SEISS)
The Self-Employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) during the Covid-19 crisis.
The scheme will provide a taxable grant to self-employed individuals or partners, worth 80% of their profits up to a cap of £2,500 per month.
HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000.
The scheme will be open for an initial three months.
Eligibility criteria:
- Be self-employed or a member of partnership;
- Have lost trading/partnership trading profits due to COVID-19;
- File a tax return for 2018-19 as self-employed or a member of a trading partnership.
- Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020-21
- Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
- Your trading profits and total income in 2018/19
- Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.
Access to the scheme
Individuals should not contact HMRC now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational. HMRC will then pay the grant directly to eligible claimants’ bank account.
Timing of payments
Grants are expected to start to be paid by the beginning of June 2020. In the interim the self-employed will still be eligible for other government support, including more generous universal credit and business continuity loans.
‘Furloughed’ Worker Update
We released our guidance around this on our previous update, however there has been new updates on business eligibility, how to claim, what you need to claim as well as other useful information can be found here.
It may also be worth reading up on the guidance targeted towards employees, as this also highlights eligibility rules and other questions that may come to light. Here is a link with more information.
Business Rates Relief Update
Despite the government guidance stating that ‘you do not need to do anything’ in order to obtain the grant, we have heard a few instances of this being incorrect. Certain local councils are saying that they do not hold company bank details and that they are unable to issue cheques.
With that in mind we are recommending that you contact your local council to initiate a claim.
As always, if you need us for anything please get in touch on 01142 664 432 or info@smhca.co.uk
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