Self-Employed Income Support Scheme Update

The Self-Employed Income Support Scheme is now closed to new claims for the first grant. However, as advised in our blog of 31 May 2020, the scheme has been extended.

• Anyone who was eligible for the first grant and who can confirm to HMRC that their business has been adversely affected by the Coronavirus pandemic on or after 14 July 2020 will be eligible to make a claim for a second and final grant. You will need to keep evidence to confirm your business was adversely affected at the time you make your claim.
• The claims portal for the second grant will open on Monday 17 August 2020 and close on Monday 19 October 2020. You will need your Government Gateway user ID and password to make the claim online. If you do not have a user ID, you can create one when you make your claim.
• The second grant will amount to 70% of your average, monthly trading profit over the last three years and will be capped at a total of £6,570.
• The grant will be treated as part of your self employment income and is therefore subject to income tax and self-employed national insurance
• HMRC will contact you if they believe you can claim the grant and will apply the same eligibility criteria as the first grant.
• If you are eligible, you can make a claim for the second grant even if you did not make a claim for the first grant.
• As for the first grant, you must make the claim for the second grant yourself. We cannot therefore make the claims for our clients as this may trigger a fraud alert and delay the payment of the grant.
• You cannot make a claim if you trade via a limited company or a trust.
• To establish eligibility HMRC will first look at your 2019 tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
• If you are not eligible based on your 2019 tax return, they will then look at the previous two years’ returns.
• If you are eligible for the grant you can continue to work, start a new trade or take on other employment including voluntary work.

The most recent government guidance can be found here:

https://www.gov.uk/guidance/how-different-circumstances-affect-the-self-employment-income-support-scheme

The new guidance includes eligibility criteria for self-employed individuals who have had a new child.  Claims for these individuals may be possible if either trading profits were affected during 2018/19 or if having a child meant that a tax return was not submitted for 2018/19.

The guidance also includes further information on claims for military reservists, non-UK residents and any taxpayers subject to the EBT loan charge.

You can read more about the details of the scheme and how HMRC will calculate any grant due in our earlier blogs:-

https://jsca.co.uk/coronavirus-self-employment-income-support-scheme-how-hmrc-will-calculate-total-income-and-trading-profits-for-the-scheme/

https://jsca.co.uk/get-ready-to-make-your-self-employment-income-support-scheme-seiss-claim/

https://jsca.co.uk/government-announces-support-for-the-self-employed/

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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