Self Employment Income Support Scheme (SEISS)
Emails, SMS messages and letters are currently being sent to taxpayers who HMRC considers eligible for the SEISS grant.
These are expected to arrive over the next 2 week period. Each taxpayer will receive one form of contact:
- By email if HMRC holds an email address
- SMS is used when HMRC holds a mobile number, but no email address
- A letter is sent when HMRC holds neither an email address or mobile number
HMRC are able to run eligibility checks based on the figures they hold from the 2016/2017, 2017/2018 and 2018/2019 tax returns, however there are also additional requirements to the scheme that must be met as follows:
- traded in the tax year 2019/20;
- are trading when they apply, or would be except for coronavirus;
- intend to continue to trade in the tax year 2020/21; and
- have lost trading profits due to coronavirus.
How much is the grant?
Broadly speaking, a grant is available based on your average trading profit over the three tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
HMRC will work out your average trading profit by adding together your total trading profits or losses for the three tax years, then divide by three.
The grant will be 80% of your average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 altogether.
The key criteria are:
- Average trading profits must not exceed £50,000
- Average trading profits must be at least equal to your non-trading income
Additional calculation may also be required (for example):
- Additional sources of income are received (i.e. employment/investment or property for example)
- Self employment has not been continuous for the full three years (for example you started in May of 2018)
- If your return is late, amended or under enquiry
Client Action Plan
Check your eligibility
Using this link you will need to enter your:
• 10 digit Unique Tax Reference “UTR” plus
• National Insurance number
On confirmation of eligibility you will then be asked to provide contact details.
A date of when application can be made will also be provided at this stage.
The website will then direct you to the login area to enter contact information.
Logging in to government gateway account
1. Use an existing HMRC login if you have one, links are available for “Forgotten User ID’s and Passwords”.
2. If you have not created an HMRC login previously, you will need to create an account.
A government verification facility is used which operates in a similar way to online passport applications.
3. You will then be able to enter your contact information.
Application for grant
Applications will open to taxpayers on a staged basis between 13 and 18 May, with the portal opening on different days for different taxpayers.
HMRC will email taxpayers who have provided an email address (when using the eligibility checker or previously) to confirm when the portal is open for them.
Taxpayers then log in to their government gateway account to complete the application process.
Taxpayers will be asked to view a detailed calculation and are asked to:
• Read and accept the eligibility criteria
• Complete declarations, including to confirm that the business has been adversely affected by coronavirus
• Supply the bank account details into which they would like the grant to be paid.
You do not need to provide any information about your income, this will be taken from HMRC records of submitted Tax Return data.
HMRC will check the claim and expects to make payments from 25 May 2020 within six working days of the application being submitted.
If you’re unable to claim online, HMRC has announced that an alternative way to claim will be available.
No further details on the alternative method are currently available at this time, however we will keep an eye out for any updates.
For further advice and guidance please contact us on firstname.lastname@example.org.