Deadline for self-employment grant applications announced – how to apply
PEOPLE who are self-employed and have been affected by the coronavirus crisis have four weeks left to make a claim for government support.
If you’re eligible and your business has already been adversely affected you must make your claim for the Self-Employment Income Support Scheme (SEISS) on or before July 13 - four weeks today.
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The SEISS allows you to claim a taxable grant worth 80 per cent of your average monthly profits up to £2,500.
The grant can be backdated to cover March, April and May, meaning you could claim up to £7,500 in total.
As well as that, the government has said that if you’re continuing to be affected by the pandemic after July 14, you will be able to make a second claim covering lost earnings in June, July and August.
Workers will get less cash this time: the grant has been reduced to 70 per cent, to a maximum of £6,750.
You will have to prove that your earnings are still taking a hit, and then you will be able to make the claim in August.
You can make a claim for this second round even if you did not claim in the first round.
What help is available?
THE government has introduced the following measures to help self-employed workers and businesses during the coronavirus outbreak.
- Income-tax deferrals: Self-assessment income tax payments, that were due in July, can be deferred to the end of January next year.
- Rent support: Businesses who are struggling to pay their rents are protected from eviction until the end of June.
- Coronavirus business interruption loan scheme: SMEs can get loans and overdrafts of up to £5 million for up to six years and the government with guarantee up to 80 per of these loans.
- Grants of up to £10,000: Small firms can get grants of up to £10,000 to help with ongoing business costs.
- VAT payments: VAT payments can be deferred for three months.
- Tax bill help: SMEs that cannot afford their tax bills can ask HMRC for a “time to pay” arrangement so any debt collection is suspended.
- Business rates holiday: A 12-month business rates holiday has been introduced for many businesses.
HMRC contacted tax-payers eligible for the SEISS during the start of May to let them know that they could make a claim for the first round of funding.
Self-employed workers can also check how much they will be able to claim using a free online tool, accessed by logging into their government portal.
Money is paid into your accounting within six working days of completing the claim.
To be eligible for the financial help, self-employed workers must have traded in the tax year 2019 to 2020 and intend to continue trading. They must also:
- Earn at least half of their income through self-employment,
- Have trading profits of no more than £50,000 per year,
- Traded in the tax year 2018 to 2019 and submitted their self-assessment tax return on or before April 23 2020 for that year.
HMRC is using information that customers have provided in their 2018 to 2019 tax return - and returns for 2016 to 2017 and 2017 to 2018 where needed - to work out who is eligible.
Your business could be adversely affected by coronavirus if, for example, you've been unable to work because you are shielding, self-isolating or are on sick leave because of coronavirus.
You would also qualify is you have had caring responsibilities because of coronavirus.
Also, if you have had to scale down or temporarily stop trading because your supply chain has been interrupted, you have fewer or no customers or clients, or your staff are unable to come in to work, then you are also eligible.
Some workers have complained that they are missing out on government help because of holes in the scheme.
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Here's everything you need to know about the scheme's second round.
If you're not eligible for the SEISS or furlough schemes, you can apply for help through Universal Credit.