Doctors / GPs

COVID19 Government financial support to the self employed

simon

Simon Misiewicz

5th November 2020

Step by step guide of the Self Employment Income Support Scheme (SEISS)

1 – Check your eligibility for the government grants

2 – Review your previously submitted self-assessment tax returns and see if your self-employment income is equal to or greater than 50% of your total taxable income

3 – Average out your annual profits of the previously submitted self-assessment tax returns

4 – Use this number to apply for the SEISS grant funding

5 – Identify any other benefits or grants are open to you

The Self Employment Income Support Scheme

You may be interested to know how Coronavirus also is known as COVID19 affects other aspects of the economy be it self employment, property or other aspects of employment.

The average taxable profits will be based on the tax years

– 2016 to 2017

– 2017 to 2018

– 2018 to 2019

Criteria when claiming the self-employment income support scheme

You can apply if you’re a self-employed individual or a member of a partnership and you:

– have submitted your Income Tax Self Assessment tax return for the tax year 2018-19

– traded in the tax year 2019-20

– are trading when you apply, or would be except for COVID-19

– intend to continue to trade in the tax year 2020-21

– have lost trading/partnership trading profits due to COVID-19

The self-employed person must:

– Have less than £50,000 profit from their last self-assessment tax return

– 50% of their total income is driven by their self-employment income

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If you claim tax credits, you’ll need to include the grant in your claim as income. This income from the grant is taxable.

 

The process to receive the self-employment income support scheme

The online service will be available from 13 May 2020. HMRC will tell you the date you can make your claim. You receive your payment within 6 working days. Check your eligibility for the Self Employment Income Support Scheme here

Self-employed persons cannot apply for this scheme yet. HMRC will contact those people that are eligible for the scheme. Individuals do not need to contact HMRC. Doing so will only delay the urgent work being undertaken to introduce the scheme.

You’ll only need your:

– Self Assessment UTR – if you do not have this find out how to get your lost UTR

– National Insurance number – if you do not have this find out how to get your lost National Insurance number

– Government Gateway user ID and password – if you do not have a user ID, you can create one when you check your eligibility online

– bank account number and sort code you want us to pay the grant into (only provide bank account details where a BACS payment can be accepted)

SEISS Phase 1: May to July 2020

The first quarterly SEISS grant funding was provided by Rishi Sunak for the period May to July 2020

The amount of money provided was the lower of:

– 80% of the average quarterly profits or

– £7,500 for the quarter (capped)

The application fort the first SEISS grant was closed on 13th July 2020

SEISS Phase 2: August to October 2020

The second quarterly SEISS grant funding was provided by Rishi Sunak for the period August to October 2020

The amount of money provided was the lower of:

– 70% of the average quarterly profits or

– £6,570 for the quarter (capped)

The application fort the first SEISS grant was closed on 20th October 2020

SEISS Phase 3: November 2020 to January 2021

The third quarterly SEISS grant funding was provided by Rishi Sunak for the period November 2020 to January 2021

The grant funding was originally just 20% and capped at £1,875. This was overturned when Rishi Sunak came under pressure from the Manchester Local Authority namely Andy Burnham

The amount of money now provided was the lower of:

– 80% November 2020 of the average monthly profit

–  80% December 2020 of the average monthly profit

– 80% January 2021 of the average monthly profit

The above profits will be capped at £7,500 for the quarter (capped)

 

 

SEISS Phase 4: February to April 2021

The fourth quarterly SEISS grant funding was provided by Rishi Sunak for the period February to April 2021

The amount of money now provided was the lower of:

– 80% February 2021 of the average monthly profit

–  80% March 2021 of the average monthly profit

– 80% April 2021 of the average monthly profit

The above profits will be capped at £7,500 for the quarter (capped)

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