Claims for SEISS Grant 3 are now closed
It was worth 80% of average monthly profits and capped at £7,500 in total.
The Government will review the level of the second grant and set this in due course.
The grants are taxable income and also subject to National Insurance contributions
ELIGIBILITY FOR GRANT 3 FROM SEISS WAS BASED ON THESE CRITERIA :-
a) You're a sole trader, or a member of a partnership with a tax return for 2019
b) You have lost income due to Covid 19 in the period following Nov1
c) Your annual trading profits of no more than £50,000
d) You make more than 50% of your annual income from self-employment
Contents
THIRD GRANT OPTIONS
Applications for the second grant will open on November 30
You don't need to have claimed the first or second grants, to claim the third grant.
To claim the third grant you will need to confirm that your business was still adversely affected by COVID-19
Decide if you’ve been adversely affected
If your business recovers after you’ve claimed, your eligibility will not be affected.
You should also keep any evidence that your business has been adversely affected by coronavirus at the time you made your claim, such as:
business accounts showing a reduction in turnover
confirmation of any coronavirus-related business loans you have received
dates your business had to close due to lockdown restrictions
dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities
ADVERSELY AFFECTED EXAMPLES
Individuals will be able to claim a third taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £5,160 in total.
Unfortunately, H.M.R.C. have confirmed that accountants like T +G will still not be allowed to make the claims for our clients.
Although we haven't been allowed to make your claim we want to make sure we can help you prepare.
PART 1 STEP BY STEP GUIDE : -
Each individual member of a partnership and every sole trader needs to act now to ensure they have a separate and active G.G.I.D. for the Self- Employed Income Support Scheme
Check now if H.M.R.C. think you are eligible
1. You will need to enter your U.T.R., the 10-digit Unique Tax Reference found on the left-hand side of your tax return and the National Insurance number found underneath that
2. If you do not have an individual G.G.I.D. you need to set one up there and then. You will need your passport, which is the easiest option, or your driving licence details from the plastic card version, to confirm your identity.
3. If H.M.R.C. do not think you are eligible to claim, you will be able to ask for a review
Webchat
Phone
0800 024 1222
Opening times: Monday to Friday: 8am to 4pm
Closed on bank holidays.
How different circumstances affect your claim
If your tax return is late, amended or under enquiry
If you’re a member of a partnership
If having a new child affected the trading profits you reported for the tax year 2018 to 2019
If you’re a military reservist
If you’re non-resident or chose the remittance basis
Ask HMRC to verify you had a new child which affected your eligibility
PART 2 MAKING A CLAIM
You will need:-
· your UTR
· your National Insurance Number
You will be told straightaway if your are eligible at this point.
· Government Gateway ID
· Bank Account details (which must be capable of accepting a B.A.C.S. payment)
You will then need to confirm you have been affected by coronavirus and are within state aid limits
There is no option to claim an increased or reduced amount of grant.
Instead the taxpayer should claim the amount of the grant as calculated by HMRC and request a review, via the link provided, if they think that the amount should be higher or lower.
HMRC will check your claim and pay your grant into your bank account in the next 6 working days.
They will send an email when your payment is on its way.
You can check the status of your payment.
IF YOU THINK THE AMOUNT IS WRONG
HMRC have used the information you or your tax agent or adviser sent them on your Self Assessment tax returns to work out your grant amount.
If you think the grant amount is wrong, you should check how much you’ll get or contact your tax agent or adviser for help.
If you still think the grant amount is wrong, you can ask HMRC to review your grant amount.
You’ll need:
your grant claim reference
your National Insurance number
the Unique Taxpayer Reference you used on your claim
the Government Gateway user ID you used to make a claim
details about why you think the grant amount is wrong
You may also need the figures HMRC gave you in the grant calculation when you made your claim.
Record keeping and reporting
You must keep a copy of all records in line with normal self-employment record keeping requirements, including the:
amount claimed
grant claim reference
You should also keep any evidence that your business has been adversely affected by coronavirus at the time you made your claim, such as:
business accounts showing a reduction in turnover
confirmation of any coronavirus-related business loans you have received
dates your business had to close due to lockdown restrictions
dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities
You will need to report both grants:
on your Self Assessment tax return for tax year 2020 to 2021
as self-employed income for any Universal Credit claims
as self-employed income as changes to your tax credits claims
The grant should be treated as income received on the day it’s paid for any Universal Credit claims or tax credit changes.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance from the day you receive it.
PAYING BACK GRANTS IF YOU WERE INELIGIBLE OR OVERPAID
You must tell HMRC if, when you made the claim you:
a) were not eligible for the grant
b)received more than we said you were entitled to
When you must tell HMRC
When you must tell HMRC depends on the date you received your grant.
If you received the grant:
a) before 22 July 2020 you must tell us on or before 20 October 2020
b) on or after 22 July 2020 you must tell us within 90 days of receiving the grant
If you do not you may have to pay a penalty.
Find out more about when you may have to pay a penalty
CONTACTING H.M.R.C.
You should first check the other support available to you.
We are receiving very high numbers of calls. Contacting HMRC unnecessarily puts our essential public services at risk during these challenging times.
But you can contact HMRC if you cannot get the help you need online.
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.
We're here to help you through Covid together, so T+G's support blog is updated every day.
For any advice you need, just call 01995 600 600, or
email our dedicated, support team at covid19@tagac.co.uk