HMRC has launched an On-line Tool for self employed taxpayers to check their eligibility for the second tranche of the Self-Employment Income Support Scheme (SEISS), click here.
If you are eligible, the On-line Tool will tell you the date you will be able to make a claim from and request you to add your contact details. If you have already claimed for the first tranche, it will be straightforward.
If you are not eligible, you can ask HMRC to review this after you have used the On-line Tool.
Claims for this Third Tranche of the Scheme are made through an online claim service . The claim must be submitted by 29 January and you can apply even if you did not make a claim for the first two tranches. Your business must have been affected by the health emergency between 1 November and 29 January. The information required to submit a claim is:
· Self-Assessment UTR (unique taxpayer reference);
· National Insurance number;
· Government Gateway user ID and password; and
· Bank account number and sort code.
Once a claim has been submitted, HMRC will advise straightaway if the grant is approved and the full three month grant will be paid within 6 working days.
For further information on the Self-Employment Income Support Scheme, please see this link.
Also HMRC has produced a video to help you through the process - see here
Background to the scheme
This third payment of the scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 a month. It will be available until 29 january 2021
The grant will be subject to Income Tax and National Insurance contributions but does not need to be repaid.
You can make a claim for Universal Credit while you wait for the grant, but any grant received will be treated as part of your selfemployment
income and may affect the amount of Universal Credit you get. Any Universal Credit claims for earlier periods will not be affected.
If you receive the grant you can continue to work or take on other employment including voluntary work.
If you have other employment as a director or employee which is paid through PAYE your employer may be able to get support using the Job Retention Scheme.
Who can claim
You can claim if you’re a self-employed individual or a member of a partnership and you:
• have submitted your Self Assessment tax return for the tax year 2018 to 2019
• traded in the tax year 2019 to 2020
• are trading when you apply, or would be except for coronavirus
• intend to continue to trade in the tax year 2020 to 2021
• have lost trading profits due to coronavirus between 1 November and 29 january 2021. You will need to confirm to HMRC that your business has been adversely affected by the coronavirus. HMRC will as usual use a risk-based approach to compliance.
Your trading profits must also be no more than £50,000 and more than half of your total income for either:
• the tax year 2018 to 2019
• the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019
If you have not submitted Self Assessment tax returns for all 3 years - find out below how HMRC will work out your eligibility.
HMRC will use data on the 2018 to 2019 tax returns already submitted to identify those eligible and will review any late returns filed before the 23 April 2020 deadline in the usual way.
If you amend a submitted return after 26 March 2020 any changes will not be taken into account when working out your eligibility or amount of the grant.
If you have loans covered by the loan charge
If you’re self-employed and have received payment for work or services in the form of a loan or other form of credit covered by the loan charge, you may be able to claim the grant, however, your eligibility and average trading profits will be based on either:
• the average of the tax years 2016 to 2017 and 2017 to 2018
• the tax year 2017 to 2018 if you were not self-employed in the tax year 2016 to 2017
You do not have to file your 2018 to 2019 Self Assessment tax return by 23 April 2020. You should file by the 30 September 2020.
If you’re a farmer claiming farmers’ averaging relief
If you’re a self-employed farmer claiming farmers’ averaging relief HMRC will use the amount of profit before the impact of the averaging claims to work out:
• if you can claim the grant
• how much grant you will receive
Find out how HMRC work out your total income and trading profits for the Self-employment Income Support Scheme.
How much you’ll get
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
• 2016 to 2017
• 2017 to 2018
• 2018 to 2019
To work out the average trading profit HMRC will add together your total trading profits or losses for the 3 tax years then divide by 3.
If you have not submitted Self Assessment tax returns for all 3 years
HMRC will work out your average trading profit based on continuous periods of self-employment, which will be either:
• the tax years 2017 to 2018 and 2018 to 2019
• the tax year 2018 to 2019 only, even if you were self-employed in
the tax year 2016 to 2017
The grant will be 80% of your average trading profit, divided by 12 which will give a monthly amount. HMRC will pay this or up to a maximum of £2,500 a month, whichever is lower.
HMRC will pay the grant directly into your bank account, in one instalment.