• Eamonn Watson

SELF-EMPLOYED INCOME SUPPORT - GRANTS 3 & 4

Updated: 3 days ago


EXTENSION FOR SEISS GRANTS THREE & FOUR



THE GRANT 2 CLAIM SERVICE IS NOW CLOSED



The extension to the scheme announced on September 24th will provide two grants and will last for six months from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.


The first grant will cover 3 months’ worth of profits from the start of November until the end of January.


It will be worth 40% of average monthly profits and will capped at £3,750 in total.


Who can claim

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)

  • declare that they intend to continue to trade and either:

  • are currently actively trading but are impacted by reduced demand due to coronavirus

  • were previously trading but are temporarily unable to do so due to coronavirus



ELIGIBILITY


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 July 14.


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

  1. What you’ll need

  2. How to claim

  3. Return to your claim

  4. After you’ve claimed

  5. What happens next

THIRD GRANT OPTIONS


Applications for the second grant will open in November


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

Adversely affected examples


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 20% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 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

Speak to an adviser online


Phone

0800 024 1222

Opening times: Monday to Friday: 8am to 4pm

Closed on bank holidays.

Find out about call charges

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 have loans covered by the loan charge and have not agreed a settlement with HMRC before 20 December 2019

If you claim averaging relief

If you’re a military reservist

State aid

If you’re non-resident or chose the remittance basis

Ask HMRC to verify you had a new child which affected your eligibility


Adversely affected examples

PART 2 MAKING A CLAIM





You will need:-


· your UTR

· your National Insurance Number


ENTER THEM HERE


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:

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



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