HMRC to contact those who may be eligible for Self-Employment Income Support Scheme

For the self-employed workers who have been hit hard financially during this pandemic, they will be pleased to hear that HMRC is to start contacting those who need income support.

Starting from this week, HMRC will get in contact with around three and a half million customers who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS) to explain the application process and help them get ready to make a claim.

The claims service opens on Wednesday 13^th May and is being delivered ahead of schedule, with payments reaching bank accounts by 25^th May, or six working days after the claim is made.

HMRC have also opened an online assessor, which will let customers check their eligibility for themselves, as well as giving them a date on which they can apply.

SEISS is a temporary scheme that will enable those eligible to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits) in a single instalment.

Customers are eligible if their business has been adversely affected by Coronavirus, they traded in 2019-20, intend to continue trading and they:

• Earn at least half of their income through self-employment;
• Have trading profits of no more than £50,000 per year; and
• Traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year.

Where individuals are ineligible for the scheme, HMRC will direct them to guidance setting out the conditions to help them understand why they are ineligible, and  advice about other support that might be available to them such as:

• Income tax deferrals.
• Rental support.
• Universal Credit.
• Access to mortgage holidays.
• The various business support schemes  the government has introduced to protect businesses during this time.

To find out more about contracting please contact Charlie on 01442 795 100 or email charlie.brooks@contractorumbrella.com.