The Government have today, May 4^th, launched a new online tool for the self-employed to check if they are eligible for the SEISS. The tool, that can be found here, is simple to use, you will just need your

• Self-Assessment Unique Taxpayer Reference (UTR) number and
• National Insurance number.

Click here to visit our Covid-19 hub for more updates>>

Assuming you are eligible for the SIESS, HMRC will confirm the date from which you can make a claim and ask to add your contact details. They will then use these details to remind you when the online application service will be available.

If for any reason HMRC deem you not eligible to make a claim, you can ask for a review of their decision. There is other support available if you’re not eligible for the grant.

A Reminder of who can claim the SEISS

You can claim SEISS, if you’re a self-employed individual or a member of a partnership and you carry on a trade which has been adversely affected by coronavirus.

You must have traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return for that year, on or before 23 April 2020. You should have traded in the tax year 2019 to 2020 and be intending to continue to trade in the tax year 2020 to 2021.

Your business could be adversely affected by coronavirus, for example if:

• you’re unable to work because you:
  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus
• you’ve had to scale down or temporarily stop trading because:
  • your supply chain has been interrupted
  • you have fewer or no customers or clients
  • your staff are unable to come in to work

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

HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then they will divide by 3.

The initial grant will be 80% of your average monthly trading profits, covering a three month period and capped at £7,500. This will be for the period to 30 June. A second grant will be available for a further three months, payable in August but this time it will be for 70% of average trading profits up to a maximum of £6,570.

The grant amount will be paid directly into your bank account, in one instalment. If you want to learn more about how HMRC will calculate your grant, the full details can be found here.

How to claim

HMRC will aim to contact you by mid-May 2020 if you’re eligible, to invite you to claim using the GOV.UK online service. To make sure HMRC have your current contact details we advise you to check your eligibility for the scheme and update our contact details.

We are unable to make your claim for you as your tax agent or adviser. You must make the claim yourself but we can assist if you have any questions.

When you make your claim you will need your

• Self-Assessment UTR
• National Insurance number
• Government Gateway user ID and password
• Bank account number and sort code for the grant to be paid into

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.

HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.

After you’ve claimed

Once you’ve submitted your claim, you will be told straight away if your grant is approved. HMRC will pay the grant into your bank account within 6 working days. Payment will be made by early June 2020 if your claim is approved.

You must keep a copy of all records in line with normal self-employment record keeping requirements, including:

• the amount claimed
• the claim reference number for your records
• evidence that your business has been adversely affected by coronavirus

You will need to report the grant on your Self-Assessment tax return.

If you have any questions or if we can help in any way, please call our expert team on 01296 468 483 or email info@orangegenie.com.