Self-employment Income Support Scheme

The Government has announced financial support measures for self-employed people, which will include many Mane contractors who work via their Ltd companies.

We understand that HMRC will contact eligible self-employed people directly and you will need to fill out an online form to claim the grant, which will be paid straight into your company bank account.

We are still waiting for many details about the scheme to be confirmed, but the information below has been announced so far. Please refer to the Government’s web page about the scheme here.

  • The scheme will provide a taxable grant worth 80% of average monthly profit, capped at £2,500 per month
  • Average profit will be calculated over the last three years
  • Contractors can claim a grant and continue to do business (so it's different from furlough leave for employees, who are not allowed to work)
  • The scheme is only open to anyone with trading profits of up to £50,000
  • The scheme is only open to those who make the majority of income from self-employment
  • The contractor must have submitted a tax return for 2019, in order to minimise fraud. However, those who did not submit their tax return by the due date of 31 January 2020, and have not yet submitted one, can still submit a tax return for 2019 for a further four weeks (until 23 April 2020)
  • The scheme will be open for at least 3 months, but is apparently unlikely to be up and running before the end of June, so may not help with immediate cash flow issues

Important Update - May 2020

This week HMRC will start contacting self-employed people who are likely to be eligible, through a combination of emails, SMS texts and letters, to tell them what they need to do to get ready to claim.  Applications will open in tranches based on the unique taxpayer number (UTR) given to all self-employed taxpayers. 
 
From this week, people will be able to use a new online eligibility checker. If the checker confirms that they are eligible (and they qualify due to being affected by coronavirus and because they intend to continue trading), they will be given a date when they can use the online service to make a claim from 13 May. 
 
Payments will be made to claimants’ bank accounts from 25 May 2020 (ahead of the original June schedule).
 
For details of the Self-Employed Income Support Scheme Eligibility checker, please see the link below:
 
https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

 

HMRC have also issued guidance on 1 May regarding who can make the SEISS claim. It is hoped that HMRC may rethink the method of claim, but at this moment, the latest guidance clearly states: “Your tax agent cannot make the claim for you”, meaning yoru accountant can't do it for you.
 
The guidance goes on to indicate that you will require: -

  • Your Self-assessment Unique Taxpayer Reference Number
  • Your National Insurance Number
  • Your Government Gateway ID and Password
  • Bank account number and sort code for payment

 

IF YOU DO NOT KNOW OR DON’T HAVE A GOVERNMENT GATEWAY ID AND PASSWORD, WE RECOMMEND YOU APPLY AS SOON AS POSSIBLE TO AVOID DELAYS IN RECEIVING PAYMENT. YOU CAN SET ONE UP AT THE SAME TIME AS CHECKING YOUR ELIGIBILITY AS OUTLINED ABOVE. YOU MAY BE ABLE TO SUBMIT A PAPER CLAIM (FULL DETAILS NOT YET PUBLISHED) BUT THIS WILL ALSO LEAD TO DELAYS IN PAYMENT.
 

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