Updates on the Self Employed Income Support Scheme & Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme (CJRS)

 

Rishi Sunak has announced that the CJRS will be extended until the end of October 2020. Employees will continue to receive 80% of their monthly wages up to £2500.

However, from August, the scheme will operate with greater flexibility to support the transition back to work and companies will be required to start sharing the cost of the scheme. For example, employees will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

More specific details and information around its implementation will be made available by the end of May 2020.

 

Self-Employment Income Support Scheme (SEISS)

 

If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) the SEISS will allow you to claim a taxable grant of 80% of your average monthly trading profits, paid out in a single instalment covering 3 months, and capped at £7,500 altogether.   This is a temporary scheme, but it may be extended.

The online service to check if you are eligible to make a claim will be available from 13 May 2020. From that date go to: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

To use the service you will need your:

• Self Assessment Unique Taxpayer Reference (UTR) number – if you do not have this find out how to get your lost UTR number
• National Insurance number – if you do not have this find out how to get your lost National Insurance number

If you are eligible HMRC will tell you the date you can make your claim from and ask you to add your contact details.  HMRC will use these to remind you when the online service will be available.

If, once submitted, your claim is approved your grant will be paid in a single instalment, directly into your bank account within 6 working days. The online service will tell you how HMRC have worked the grant out.

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist. The grant will be subject to Income Tax and self-employed National Insurance.

We would advise that you maintain a record of any grant monies received so that they can be declared on your 2020/21 tax return.

If you are not eligible for the grant there is other support available:

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#other

If you are unable to claim online an alternative way to claim will be available. Details are still to be released.

Please be aware that as your tax agent or adviser we cannot make the claim for you. You must make the claim yourself. However please do not hesitate to contact us if you need any help or support.

If you receive texts, calls or emails claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it.