For millions of the self-employed without work or running a business impacted by lockdown the government has provided aid from the Self Employment Income Support Scheme (SEISS).
This was distributed as a grant up to £7,500 or 80% of average trading profits for the tax years 2016/17 to 2018/19, and was available for three months trading for applications made before 13th July 2020. Payments made during the first SEISS grant totalled £7.8bn to 2.7m people.
A second grant is available if your business has been affected after 14th July 2020, claims can be filed up to the 19th October 2020.
The second grant is lower, up to £6,570 or 70% of profits for the tax years 2016/17 to 2018/19, for 3 months trading. Funds will be in the claimant’s bank within 6 working days after filing a claim.
Self-employed individuals who will continue to work as self-employed during the 2020/21 tax year and were self-employed in the 2019/20 tax year and have filed their 2018/19 Self-Assessment Tax Return.
Claimants need to have average profits no greater than £50,000 with more than 50% of their income from their self-employed trade and be able to make a declaration that their business was adversely affected by Covid-19.
You will need your UK bank account details, the address associated with your account, Self-Assessment Unique Taxpayer Reference (UTR), National Insurance number (NINO) and your Government Gateway user ID and password to log in to the claims portal,
A fraud alert can be triggered if an advisor or accountant files the claim so you will to to file the claim personally.
Yes, the grant must be declared in your 2020/21 Self Assessment Tax Return and income tax will be deducted, the grant is also subject to self-employment National Insurance Contributions for the tax year.
There are further details from the government website at the link below,
If you need any help with determining if you are eligible to claim please call us on 01904 404560 or email firstname.lastname@example.org