The Government has revealed the fifth and final SEISS grant which will be available to claim from the end of July
To be eligible for the Self-Employed Income Support Scheme (SEISS), trading profits from 2019 to 2020 are up to £50,000 and income from other sources must be equal or higher.
The self-employed must be aware of further eligibility factors and have recorded evidence to support their claim, this can include:
- Have the intent to continue trading in the years 2021 to 2022
- Give adequate reason for the decline in their trading profits from the impact of Coronavirus, reduced business activity, demand, capacity etc from May 2021 to September 2021
From the SEISS grant, you can claim up to £7,500, which can help keep business alive. It is estimated that the fourth and fifth grants can help around 600,000 different people, giving the opportunity of newly self-employed the availability to apply.
The amount you can claim from the fifth grant is decided by the amount your turnover has been reduced from April 2020 to April 2021.
- If the turnover is reduced by less than 30%, you will receive 30% of three months average trading profit to a maximum value of £2,850
- If the turnover is reduced by 30% or more, you will receive 80% of three months average trading profit to a maximum value of £7,500
To claim the grant, the application can be done via the notification from HMRC including text, letter, email or the online SEISS portal.
Once you have received the notification you will need your:
- Self-assessment Unique Taxpayer Reference (UTR)
- National Insurance Number
- Government Gateway user ID and password
- UK bank details (name on the account, address linked to the account, account number and sort code)
To find out your turnover figures you can:
- refer to your 2020 to 2021 Self-Assessment tax return if you’ve completed it
- check your accounting software (if you use any)
- go through your bookkeeping or spreadsheet records that cover your self-employment invoices and payments received
- check the bank account you use for your business to account for money coming in from customers
- ask your accountant or tax adviser (if you have one)
This will be the final grant so make sure to get your application in before the deadline on 30th September.
For further information go to the HMRC website, or get in touch with us at email@example.com
Initially the government paid 80% of the furloughed employees wages up to a monthly limit of £2,500, but from 1 July 2021 this has changed.
Whilst the monthly limit of £2,500 remains, the government’s contribution to the scheme has reduced to 70% with companies having to contribute the remaining 10%.
Companies using the scheme also need to be aware that, from 1 August to when the scheme ends on 30 September 2021, the government will contribute only 60%, with the remaining 20% being met by the employer.
One of the questions an employer will currently be asking itself is “are the contributions that need to be made, a cost that the business can afford in the current climate?” This could lead to questions on workflow, cashflow and as a result, staffing requirements.
Often, salaries are the biggest cost to a company which is why this is the first-place employers will look to save costs. It is important that if a decision to make redundancies is made, that professional advice is sought to ensure that redundancy entitlements have been calculated correctly and that the correct legal process is carried out to avoid any unforeseen complications. Making redundancies at the wrong time and without specialist advice could unwittingly lead to even bigger challenges.
Whilst all companies are different, redundancies may not be the only way to help a business get back on its feet and it is important that all options are explored. It can be key to seek the assistance and advice from a qualified, professional. The earlier assistance is sought and the position is reviewed, the more options there are likely to be available.
Should you need any assistance or would like to discuss any of the matters covered above then please do not hesitate to contact Kim Richards on 01922 922 943 or at firstname.lastname@example.org
With the end of the Self-Employment Income Support Scheme fast approaching, HMRC have advised claimants to make sure they are still eligible, as there have been some crucial changes to the eligibility criteria that may cause unfortunate mistakes when applying.
It is also recommended that you re-check past claims as soon as possible, to make sure that you fit the eligibility requirements for each grant as changes were made to the criteria frequently and could have been overlooked.
As well as this, it would be advantageous to also gather evidence to support your claims. HMRC will be vigilant when investigating suspected false claims and have the power to charge penalties, so to avoid this make sure to contact HMRC with any errors you may have encountered.
There are time limits for when you should notify HMRC of any money you don’t think you are entitled to, and this should be within 90 days of receiving your grant.
SEISS amounts should be entered on your tax return, and submission of the return constitutes your acceptance that the figures are accurate – so reviewing your claim before your tax return is submitted is particularly important.
For advice on the SEISS get in touch with us at hello@BKplus.co.uk.