COVID-19: self-employment income support scheme

We have been advised HMRC will start contacting people this week who may be eligible for the new Self-Employment Income Support Scheme.

If they are eligible, this scheme will allow them to claim a taxable grant worth 80% of their trading profits up to a maximum of £7,500.

The process is said to be quick and easy to follow, but we will be available to help you in guiding you through the eligibility criteria and the process for checking and claiming.

Under the rules of the scheme, not every self-employed person will be able to claim. HMRC have advised that clients must complete the claim themselves.

See their updated guidance on GOV‌.UK for information on eligibility, how they will make a claim and how HMRC calculate the grants.

Those who are ineligible

This is a very challenging time and some people may be disappointed if they are not eligible.

Alternative options may be to look at the other financial reliefs that are available :-

• delay VAT payments

• delay their self-assessment payment on account, which would ordinarily be due 31 July

• arrange to pay their self-assessment tax bill in instalments

• get a payment from the Small Business Grant Fund

• get a loan from the Business Interruption Loan Scheme or Bounce Back Loan

• get Universal Credit

• apply for Employment and Support Allowance (ESA)

• apply for Child Benefit

If you are told you are not eligible you will be able to ask for a review, or we can ask for a review on your behalf. If we or a client asks for a review, HMRC will look at their case from 18‌‌ May and explain their eligibility by the end of May.

Scams

As per our previous blog entry, there has been an increase in scam emails, calls and texts. Eligible clients will be invited to claim through GOV‌.UK – it is the only service they can use. If someone gets in touch with you claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks them to click on a link or to give information such as their name, credit card or bank details, you should not respond. It is a scam.

Suspicious emails claiming to be from HMRC can be reported to by sending them to phishing@hmrc.gov.uk. Texts should be sent to 60599.