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The Self-employment Income Support Scheme SEISS

27 - 03 - 2020

The Self-employment Income Support Scheme

SEISS

 

Please be aware that this note is based on the information published as at 27 March 2020 and is intended to provide guidance on how Foremans LLP believe at this juncture the scheme will be implemented. The information is based on Foremans LLP’s interpretation of the available data. You should not regard this as advice on how the scheme will operate as several factors have still to be announced.

 

The scheme is intended to provide a grant to self-employed individuals or partnerships worth 80% of their profits per month up to a cap of £2,500 per month. The scheme is available initially for the next 3 months. The intention is to provide similar support to the self-employed as the Job Retention Scheme does for employees.

 

Eligibility:

 

To be eligible you must meet all of the criteria below:

1.      Be self-employed or a member of a partnership. Please note we do not believe Company Directors will be treated as self-employed;

2.      Have lost trading/partnership profits due to COVID-19;

3.      File a tax return for 2018/2019 as self-employed or a member of a trading partnership;

4.      Have traded in 2019/2020;

5.      Be currently trading at the point of application (or would be except for COVID-19);

6.      Intend to continue to trade in the tax year 2020/2021;

7.      Have trading profits of less than £50,000;

8.      More than half of your total income comes from self-employment. This can be in reference to at least one of the following conditions:

·         Your trading profits and total income in 2018/2019

·         Your average trading profits and total income from up to the three years between 2016/2017, 2017/2018 and 2018/2019.

 

Access

 

1.      HMRC will be administering the scheme.

2.      Individuals should not contact HMRC now.

3.      HMRC will use existing information, we believe from filed self assessments, to check eligibility and invite applications once the scheme is operational.

4.      Grants will be paid directly to the eligible claimants’ bank account.

5.      Grants are expected to be paid out by the beginning of June 2020.

 

If you are eligible but have not submitted your self assessment tax return for 2018/2019. HMRC have announced that you have 4 weeks from 26 March 2020 to file the return and, therefore, become eligible for the scheme.

 

Grant Amount

 

The amount of the grant per month will be the lower of:

 

·         80% of the average profits from the tax years 2016/2017, 2017/2018 and 2018/2019;

·         £2,500.

 

WARNING

 

The Support Schemes announced by the UK Government are only available directly through HMRC. If you receive any communication including texts, calls or emails from anyone claiming to be HMRC saying that you are due a tax refund or saying that you can claim financial help PLEASE DO NOT click on any links or provide any personal information. We are aware that there are may scams currently circulating and do not want you to get caught.

 

Further useful information can be found at:

 

https://www.businesssupport.gov.uk/self-employment-income-support-scheme/

 

If you would like to discuss any of the issues noted above please contact us on:

 

01244 625 500 or 01978 364 000

contactus@foremansllp.com

 

Whilst all due care and attention has been taken in the preparation of these notes no liability can be accepted for any omission or item contained therein.

 

Foremans LLP

27 March 2020





 

 

 

 

 

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Foremans LLP