Self-Employment Income Support Scheme
This week HMRC will start contacting customers who may be eligible for the new Self-Employment Income Support Scheme.
The scheme will allow self-employed people to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits.
Constituents can claim if they’re a self-employed individual, or a member of a partnership, their business has been adversely impacted by coronavirus and they:
- traded in the tax year 2018 to 2019 and have submitted their Self Assessment tax return for that year on or before 23 April 2020
- traded in the tax year 2019 to 2020
- are trading when they apply – if they’ve temporarily stopped trading because of coronavirus they will still be classed as trading by HMRC
- intend to continue to trade in the tax year 2020 to 2021
Their trading profits must also be no more than £50,000, and at least half of their 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
To help constituents prepare to claim, HMRC has published updated guidance, which clarifies the eligibility criteria, the application process and how the grant is calculated.
If a constituent is not eligible for a grant under this scheme, they may still qualify for other forms of help. HMRC encourages constituents to visit GOV.UK to see what support is available.
This week HMRC is starting to contact self-employed customers who could be eligible based on the information they provided in their 2018 to 2019 tax return, via email, SMS or letter, to invite them to use the new online checker to see the date from which they can make a claim.
HMRC is encouraging agents to help their clients to use the eligibility checker themselves, or if necessary, to use the checker on their behalf, and then help them understand the result, including recommending other sources of support if they are not eligible.
To use the eligibility checker, self-employed people will need their:
Self Assessment Unique Taxpayer Reference (UTR)
National Insurance number
If the checker confirms eligibility, they will be given a date between 13 and 18 May when they can first use the online system to make a claim. Please note these dates are allocated randomly by HMRC – it is not ‘first come, first served’ so the date the eligibility checker is used has no impact on when the system opens for claims from a customer.
Constituents should then log onto their Government Gateway account with their user ID and password. They will be able to update their contact details at this point, and these details will be used to email or text message them a reminder of when they can come back to make their claim.
If they do not have a Government Gateway Account, they can create one when they check their eligibility online.
The process has been designed to be as simple as possible. HMRC will have done all the calculations already.
HMRC will contact eligible people between 13 and 18 May, on the day they can apply, to remind them the system has opened for them to submit their claim (as above, the dates people can apply will be staggered to allow the system to cope with demand).
To receive money via the Self-Employment Income Support Scheme, self-employed people will need to go to GOV.UK on (or any time after) their allotted day to submit their claim. They should again enter their UTR, National Insurance Number and Government Gateway password and user ID and additionally provide their bank account details. They will also have to confirm that their trading profits have been adversely affected by Coronavirus.
Customers who consider themselves to be digitally excluded and therefore unable to apply online, will be invited to contact HMRC by telephone. An HMRC advisor will make a claim on their behalf using the SEISS system.
Applications will be risk-assessed based on the eligibility criteria and HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.
A review process will be in place for those who do not agree with HMRC’s eligibility assessment or calculation of their grant.
The scheme allows people to claim a taxable grant worth 80% of their trading profits up to a maximum of £7,500 equivalent to three months’ profits. If the claim is approved it will be paid directly into their bank account within six working days of submitting a claim, paid in a single instalment.
The online system will tell people how much they will be paid and how HMRC calculated that amount (based on their previous tax returns).
Dear Ms Bardell, HM Revenue and Customs (HMRC) has been issuing a regular MP digest outlining the various packages of support and other easements available to help your constituents during the coronavirus outbreak. We want everyone to know about what is available, so please do share these messages with people living and working in your constituency. The government has set up a dedicated support page where businesses can find the right support, advice and information to help with the impact of coronavirus.
Self-Employment Income Support Scheme This week we will start contacting customers who may be eligible for the new Self-Employment Income Support Scheme. The scheme will allow your constituents to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits. Constituents can claim if they’re a self-employed individual, or a member of a partnership, their business has been adversely impacted by coronavirus and they:
Their trading profits must also be no more than £50,000, and at least half of their total income for either:
To help constituents prepare to claim, we have published updated guidance, which clarifies the eligibility criteria, the application process and how the grant is calculated. If a constituent is not eligible for a grant under this scheme, they may still qualify for other forms of help. We’d encourage your constituents to visit GOV.UK to see what support is available. We’d ask at this busy time that people only call us if they cannot find what they need on GOV.UK or via webchat. This week we are starting to contact self-employed customers who we think could be eligible based on the information they provided in their 2018 to 2019 tax return, via email, SMS or letter, to invite them to use our new online checker to see the date from which they can make a claim. We are encouraging agents to help their clients to use the eligibility checker themselves, or if necessary, to use the checker on their behalf, and then help them understand the result, including recommending other sources of support if they are not eligible. To use the eligibility checker, your constituent they will need their: If the checker confirms your constituent is eligible, they will be given a date between 13 and 18 May when they can first use the online system to make a claim. Please note these dates are allocated randomly by HMRC – it is not ‘first come, first served’ so the date the eligibility checker is used has no impact on when the system opens for claims from a customer. Constituents should then log onto their Government Gateway account with their user ID and password. Your constituent will be able to update their contact details at this point, and these details will be used to email or text message them a reminder of when they can come back to make their claim. If they do not have a Government Gateway Account, they can create one when they check their eligibility online. The process has been designed to be as simple as possible. HMRC will have done all the calculations for your constituents already. We will contact eligible people between 13 and 18 May, on the day they can apply, to remind them the system has opened for them to submit their claim (as above, the dates people can apply will be staggered to allow the system to cope with demand). To receive money via the Self-Employment Income Support Scheme, constituents will need to go to GOV.UK on (or any time after) their allotted day to submit their claim. Your constituents should again enter their UTR, National Insurance Number and Government Gateway password and user ID and additionally provide their bank account details. They will also have to confirm that their trading profits have been adversely affected by Coronavirus. Customers who consider themselves to be digitally excluded and therefore unable to apply online, will be invited to contact HMRC by telephone. An HMRC advisor will make a claim on their behalf using the SEISS system. Applications will be risk-assessed based on the eligibility criteria and we will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate. A review process will be in place for those who do not agree with HMRC’s eligibility assessment or calculation of their grant. Back to top The scheme allows people to claim a taxable grant worth 80% of their trading profits up to a maximum of £7,500 equivalent to three months’ profits. If the claim is approved it will be paid directly into their bank account within six working days of submitting a claim, paid in a single instalment. The online system will tell your constituents how much they will be paid and how HMRC calculated that amount (based on their previous tax returns). How tax agents can support their clients Tax agents can play an important role in supporting their clients by helping them get ready to claim by
Under the rules of the scheme, not every self-employed person will be able to claim, and we’d value the support of agents in being their clients’ first port of call to help them understand this. Agents can check GOV.UK for information on eligibility, how to make a claim and how we calculate the grants. HMRC has updated the Coronavirus Job Retention Scheme Guidance in response to feedback received.
The guidance for employers is also available on GOV.UK and contains the following updates:
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HMRC has set up a help line specifically for the self-employed people and businesses who could be struggling due to COVID-19. You can contact this helpline at: 0800 0159 559. The general business support line for Scotland is 0300 303 0660
- HMRC support for people and businesses in your constituency
- Contacting HMRC with urgent casework
- Be aware of COVID-19 scams
Other HMRC updates for your constituents
- One-year delay to reform of the off-payroll working rules (IR35)
- Loan Charge update
- Remind your constituents about Help to Save
- Encourage your constituents to apply for Marriage Allowance
- Consultation on HMRC’s Customer Charter
- New HMRC Professional Standards Committee
- Quickest way to confirm a National Insurance number
Support for Scottish businesses
£1 billion Business Support Fund opens
Grants to help businesses with Covid-19 impact
Businesses can now apply for grants to help them deal with the impact of the coronavirus (Covid-19) outbreak.
The one-off grants are designed to help protect jobs, prevent business closures and promote economic recovery, and more than 90,000 ratepayers across Scotland will be able to benefit. The grant support is additional to separate tax relief measures and is part of a package of measures worth £2.2 billion. Small businesses in receipt of the small business bonus scheme or rural relief, as well as hospitality, leisure and retail business can benefit.
Two types of grant are now available to ratepayers:
• a one-off £10,000 grant to ratepayers of small businesses
• a one-off grant of £25,000 available to retail, hospitality and leisure business ratepayers with a rateable value between £18,001 and £50,999
The list is not exhaustive and if businesses think they may be eligible for one of these grants, they should contact their local authority, which are administering the scheme on behalf of the Scottish Government.
Local authorities will aim to make payments within 10 working days. You can download the form and find out more information on the West Lothian Council page – https://www.westlothian.gov.uk/article/51475/Coronavirus-Business-Support-Fund
Actions being taken by the Scottish Government to support businesses, including a package of measures worth £2.2 billion from 1 April:
- a full year’s 100% non-domestic rates relief for retail, hospitality and tourism
- £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief
- £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000
- 1.6% relief for all properties, effectively freezing the poundage rate next year
- First Minister to convene an emergency meeting of the Financial Services Advisory Board
- urging local authorities to relax planning rules to allow pubs and restaurants to operate temporarily as takeaways
- extending the go live date for the deposit return scheme to July 2022
- halting the introduction of the Visitor Levy Bill
https://www.gov.scot/news/gbp-2-2-billion-for-business/
Guidance for small businesses and the self-employed
This information from the Federation of Small Businesses is under continual review.
https://www.fsb.org.uk/campaign/covid19.html
Citizens Advice Scotland has this advice for claiming benefits if you are self-employed
You can’t get SSP if you’re self-employed.
If you have to take time off work and you don’t get paid while you’re off, you might be entitled to claim benefits. If you’re already claiming benefits, you might get more money.
If you already get benefits like Tax Credits or Housing Benefit, tell the office paying you that you can’t work because you’re sick. You might be entitled to more money while you’re off work.
If you’re not claiming any benefits you might be entitled to claim Employment and Support Allowance (ESA) or Universal Credit to top up your income. Check if you can claim ESA. Check if you can claim Universal Credit.
UK Government guidance for employers and businesses
This guidance includes details of support available to businesses including:
- statutory sick pay relief package for small and medium-sized enterprises (SMEs)
- a 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- the Coronavirus Business Interruption Loan Scheme to support long-term viable businesses who may need to respond to cash-flow pressures by seeking additional finance
- the HMRC Time To Pay Scheme to help with tax
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
Employment rights and sick pay (this is useful from the House of Commons Library)
Commercial rates reliefs
There’s a Scottish Government Q&A website on the emergency measures and funding announced for commercial rates reliefs. It will continue to be updated regularly so keep checking back.
https://www.mygov.scot/non-domestic-rates-coronavirus/
ACAS, the Advisory, Conciliation and Arbitration Service, has some good advice including what to do if your employer has to close the workplace and what to do if an employee needs time off work to care for someone with Coronavirus.
https://www.acas.org.uk/coronavirus
Lay-offs and short-time working
Some information/advice from the Government on lay-offs and short term working.
https://www.gov.uk/lay-offs-short-timeworking
Scottish Business Resilience Centre
Over the next few weeks SBRC will be hosting a series of business resilience webinars with industry experts to share practical advice and guidance on a range of pressing subjects.
https://mailchi.mp/sbrcentre.co.uk/covid-19-business-advice-20032020?e=aad5148198