YOUR A-Z OF COVID SUPPORT

Updated: Aug 16, 2021

The fastest way to find what you want is to scroll down to the the FAQ's and Index sections.


More articles and news on grants and support appear in our blog pages too.


For further guidance call 01995 600 600, or email our support team at covid19@tagac.co.uk


F.A.Q.'s


WHAT FINANCIAL SUPPORT IS THERE FOR ME?


HAVE YOU LOST YOUR JOB DUE TO CORONAVIRUS?


FIND OUT WHAT SUPPORT YOU CAN GET FOR YOUR BUSINESS


UK GOVERNMENT SUPPORT FOR BUSINESSES IN SCOTLAND


SOMEONE TESTS POSITIVE AT WORK :- WHAT NEXT?


INDEX OF CONTENT



THE SELF EMPLOYED INCOME SUPPORT SCHEME


JOB RETENTION SCHEME


RESTART AND ADDITIONAL RESTRICTIONS GRANTS


RECOVERY GRANTS


MORTGAGES AND 95% HELP TO BUY


LESSER USED SUPPORT IS DETAILED HERE IN A SEPARATE BLOG



GUIDANCE FOR THE SELF-EMPLOYED


THE SELF-EMPLOYED INCOME SUPPORT SCHEME


Self Employed Income Support Grant Five



A fifth and final grant, covering May 2021 to September 2021, is now open.


Find out how to claim the grant if you’re self-employed or a member of a partnership and have been significantly impacted by coronavirus



The claim process is now live until September 30, 2021.



Find out how to decide if your business has been impacted by coronavirus (COVID-19) and how this affects your eligibility for a SEISS grant.

  1. What you’ll need to make your claim

  2. How to claim

  3. Return to your claim

  4. After you’ve claimed

  5. Records you need to keep

  6. Contacting HMRC



Find out what to do if you need to pay back some or all of a SEISS grant.


  1. When you must tell HMRC

  2. What you will need

  3. How to tell HMRC and pay money back

  4. Penalties for not telling HMRC

  5. Contacting HMRC


Find out the turnover figures you’ll need before you claim, where to find them and how they affect your grant amount.


  1. Before you claim

  2. How to work out your April 2020 to April 2021 turnover

  3. Find a previous year’s turnover to use as a reference year

  4. How your turnover affects your grant amount

  5. Examples

  6. Get help working out your turnover

You will need to work out the changes in your turnover to claim the fifth SEISS grant and to claim a grant at the previous levels, then declare if you are more than 30% down on a typical pre-covid year for your business.


Find out how to demonstrate the drop in your turnover here with examples.



How to claim


You should make your claim on or after the personal claim date HMRC has given you.


You must make the claim yourself. Do not ask a tax agent or adviser to claim on your behalf as this will trigger a fraud alert, which will delay your payment.


HMRC will check claims. We’ll take appropriate action to withhold or recover payments for claims found to be dishonest or inaccurate. If you know you’re not eligible for the grant and do not tell us, you may also have to pay a penalty.


If an amendment to your tax return on or after the 3 March 2021 lowers the grant amount you’re eligible for, you’ll need to tell us within 90 days. You may need to pay back some or all of the grant


How much you’ll get


Turnover reduction Maximum grant

30% or more 80% of 3 months’ average trading profits £7,500

Less than 30% 30% of 3 months’ average trading profits £2,850


You need to work out your turnover for a 12-month period, starting on any date from 1 to 6 April 2020.


You can use one of the following periods:

  • 1 April 2020 to 31 March 2021

  • 2 April 2020 to 1 April 2021

  • 3 April 2020 to 2 April 2021

  • 4 April 2020 to 3 April 2021

  • 5 April 2020 to 4 April 2021

  • 6 April 2020 to 5 April 2021

You should check that your figure is accurate. HMRC will be able to check your figures after you submit your tax return for this period.

The grant is taxable and will be paid out in a single instalment.

Guidance for claiming the grant will be available by early June 2021.


Who can claim


To be eligible for the grant you must be a self-employed individual or a member of a partnership.


When you must have traded

You must have traded in the tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021

  • 2020 to 2021

You must either:

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

  • have been trading but are temporarily unable to do so due to coronavirus

Your tax returns


To work out your eligibility for the fifth grant, we’ll first look at your 2019 to 2020 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.


If you’re not eligible based on your 2019 to 2020 tax return, we’ll then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.


Deciding if you can claim


You must declare that:

  • you intend to continue to trade

  • you reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus from May 2021 to September 2021

You must keep evidence that shows how your business has been impacted by coronavirus resulting in less business activity than otherwise expected.


HMRC expects you to make an honest assessment about whether you reasonably believe your business will have a significant reduction in profits.




You can follow these steps to help you understand what you can do now.

  1. Find out who can claim

  2. Check that your business has been impacted by coronavirus.

  3. Find out how HMRC works out your grant.

  4. Make your claim when the service is available.

  5. Find out what happens after you’ve claimed.

  6. Make a repayment of the SEISS grant where you should not have claimed



WHO CAN CLAIM?


To be eligible for the fifth grant you must be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust.

You must have traded in both tax years:

  • 2019 to 2020 and submitted your tax return on or before 2 March 2021

  • 2020 to 2021

You must either:

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

  • have been trading but are temporarily unable to do so due to coronavirus

You must also declare that you:

  • intend to continue to trade

  • reasonably believe there will be a significant reduction in your trading profit

How HMRC works out your eligibility based on your tax returns

To work out your eligibility for the fifth grant we’ll first look at your 2019 to 2020 Self Assessment tax return. Your trading profits must be no more than £50,000 and at least equal to or more than your non-trading income.

If you’re not eligible based on your 2019 to 2020 Self Assessment tax return, we’ll then look at the tax years 2016 to 2017, 2017 to 2018, 2018 to 2019 and 2019 to 2020.

Find out more information on how HMRC works out trading profits and non-trading income for the self-employment income support scheme.

How different circumstances affect the scheme

There are some circumstances that can affect your eligibility such as if:

If you claim Maternity Allowance this will not affect your eligibility for the grant.

Find out more information on how your circumstances affect your eligibility.



Find out more information on how HMRC work out your trading profits.


HMRC look at your trading profits and non-trading income on your Self Assessment tax returns to check if you meet the eligibility criteria for the fourth grant.


We also use your average trading profits to work out how much grant you’ll get.

  1. Trading profits

  2. Non-trading income

  3. How we work out your trading profit and non-trading income eligibility

  4. How we work out your average trading profits and grant amount


If an amendment to your tax return on or after the 3 March 2021 lowers the grant amount you’re eligible for, you’ll need to tell us within 90 days. You may need to pay back some or all of the grant.



Return to your claim


If you need to return to your claim, you can:

  • check the status of your payment

  • update your bank details if we have asked you to

  • check how much you got for previous grants

  • check to see if you think the grant amount is too low

After you’ve claimed


We’ll check your claim and pay your grant into your bank account within 6 working days. We’ll send an email when your payment is on its way.

Do not contact us unless it has been more than 10 working days since you made your claim and you have not received your payment in that time.

If your business recovers after you’ve claimed, your eligibility will not be affected as this is based on your reasonable belief that your trading profits would have been significantly reduced at the time you made your claim. You must keep evidence to support this.


If you made a claim in error as you were not eligible for a grant or would like to make a voluntary repayment, tell HMRC and pay some or all of the grant back.


Records you need to keep


You must keep a copy of all records in line with normal self-employment record keeping requirements, including the:

  • amount claimed

  • grant claim reference

If you’re currently trading but have reduced demand


You must keep any evidence that your business has had reduced activity, capacity or demand due to coronavirus at the time you made your claim, such as:

  • business accounts showing reduction in activity compared to previous years

  • records of reduced or cancelled contracts or appointments

  • a record of dates where you had reduced demand or capacity due to government restrictions

If your business is temporarily unable to trade

You must keep evidence if your business has been unable to trade due to coronavirus, such as:

  • a record of dates where you had to close due to government restrictions

  • NHS Test and Trace communications - if you’ve been instructed to self-isolate in-line with NHS guidelines and are unable to work from home

  • a letter or email from the NHS asking you to shield

  • test results if you’ve been diagnosed with coronavirus

  • letters or emails from your child’s school with information on closures or reduced hours


You can check a list of genuine HMRC contacts if you receive any suspicious texts, calls or emails claiming to be from HMRC as this may be a scam.


TAXING THE GRANT


The grant is subject to Income Tax and self-employed National Insurance Contributions. It must be reported on your 2021 to 2022 Self Assessment tax return.

The grant also counts towards your annual allowance for pension contributions.


SEISS grants are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.



JOB RETENTION SCHEME EXTENDED TO SEPTEMBER 30



The CJRS is being extended until September 2021. The government will pay 80% of wages up to a cap of £2,500.


If you cannot maintain your workforce because your operations have been affected by coronavirus (COVID-19), you can furlough employees and apply for a grant to cover a portion of their usual monthly wage costs where you record them as being on furlough.


  • From July 1 2021 the employer will also pay 10% of hours not worked


  • In August and September the employer will also pay 20% of hours not worked


  • Flexible furloughing will be allowed in addition to full-time furloughing.


  • This extended Job Retention Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wages cost



For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before the 2 March 2021 to claim for periods starting on or after 1 May 2021.


For periods ending on or before 30 June 2021 you can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. From 1 July 2021, the level of grant will be reduced each month and you will be asked to contribute towards the cost of your furloughed employees’ wages.


You do not need to have previously claimed for an employee before the 2 March 2021 to claim.


Employers can furlough employees for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked.

You will need to pay for employer National Insurance contributions and pension costs. Find out more information on employer contributions to the Coronavirus Job Retention Scheme.


If you’ve already worked out how much you can claim, you can claim for wages online through the Coronavirus Job Retention Scheme.


HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. You can report suspected fraud in the Coronavirus Job Retention scheme.


Coronavirus Job Retention Scheme grants are not classed as state aid.



The next step for employers (where relevant) will be to notify their staff that they are aware of this extension to the scheme, making clear that further information will be communicated to applicable staff in due course and, where appropriate, updated furlough letters will be provided.


In particular, employers will need to review the letters they have sent to furloughed staff in the past to see whether those letters refer to a specific end date for furlough, or state more generally that furlough will continue until the end of the scheme.


Contents

  1. Employers who can claim under the CJRS extension

  2. Employees furloughed under the CJRS extension

  3. Other conditions of claiming CJRS

  4. What employers can claim - calculations

  5. How employers can claim under the CJRS extension

  6. Interaction with other Coronavirus Job Schemes





WHO IS ELIGIBLE?


Employers

  • All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.

  • The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted.

  • All other eligibility requirements apply to these employers.


Employees

  • To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020.

  • This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.


*As under the current CJRS rules:

  • Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees

  • Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.

  • When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.

  • Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.

  • For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts plus the relevant % of the employees furlough pay in July, August and September 2021.

80% WAGES AND MINIMAL EMPLOYER COSTS



  • For hours not worked by the employee, the government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.

  • Employers will pay employer NICs and pension contributions for hours worked and should continue to pay the employee for hours worked in the normal way.

  • As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.



CHECK YOUR EMPLOYER CAN USE JRS


Find out if you’re eligible, and how much your employer can claim if they put you on temporary leave ('furlough') because of coronavirus (COVID-19).

  1. Check if you’re eligible

  2. How much you’ll get

  3. While you’re on furlough

  4. Report fraud to HMRC

  5. If you do not want to go on furlough

  6. Guidance for specific customers

  7. Contacting HMRC


CHECK IF EMPLOYEES CAN BE FURLOUGHED


Find out which employees you can put on furlough and claim for through the Coronavirus Job Retention Scheme.

  1. Check how different employment conditions affect eligibility

  2. If your employee has more than one job or other duties

  3. If you’ve made your employees redundant

  4. If your employee’s health has been affected by coronavirus (COVID-19) or any other conditions

  5. If your employee is on or has recently returned from leave

  6. If you’re claiming for an individual that’s not an employee

  7. After you’ve checked which employees you can claim for



CLAIM WAGES THROUGH THE JRS


Claim for some of your employee’s wages if you have put them on furlough or flexible furlough because of coronavirus (COVID-19).

  1. What you’ll need

  2. How to claim

  3. After you’ve claimed

  4. If you have not claimed enough

  5. Contacting HMRC


CALCULATE HOW MUCH TO CLAIM

Calculate how much you have to pay your furloughed employees for hours on furlough, how much you can claim for employer NICs and pension contributions and how much you can claim back.

  1. Record keeping requirements

  2. Use the calculator

  3. Work out the maximum wage amount

  4. Work out 80% of your employee’s usual wage

  5. Work out how much you can claim for employer National Insurance contributions

  6. Work out how much you can claim for employer’s pension contributions

  7. How to claim

  8. Contacting HMRC


STEPS TO TAKE BEFORE CALCULATING YOUR CLAIM


Find out what steps you need to take before you calculate how much you can claim for furloughed and flexibly furloughed employees.

  1. Deciding the length of your claim period