Self-Employed: Information and Guidance
A range of measures have been introduced to help support those who are self-employed through the COVID-19 pandemic.
A range of measures have been introduced to help support those who are self-employed through the COVID-19 pandemic.
The Self Employment Income Support Scheme will provide self-employed individuals or members of partnerships with a taxable grant. The third grant is worth 80% of their profits, up to a cap of £7,500 which covers a three month period. Applications are now open for the third grant.
To be eligible for the scheme you need to meet the following criteria:
*This is determined by at least one of the following conditions being true:
The grant amount will be 70% of your average profits from the tax years 2016-2019. It will be a maximum of £6,570, which covers a three month period. Individuals must prove to HMRC that their business has been adversely affected by Coronavirus on or after 14 July 2020, to be eligible for the second grant.
Universal Credit
You may be eligible for Universal Credit while you wait for the grant, but the grant will be considered as self-employed income and may affect the amount of Universal Credit you will get. Any Universal Credit claims for earlier periods will not be affected.
To check your eligibility you will need your:
To make a claim you will need your:
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.
Applying for the first SEISS grant
Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applying for the second SEISS grant
Applications for the second grant will open on 17 August. Individuals will be able to claim a second taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total. Individuals claiming a second grant will need to prove their business has been adversely affected on or after 14 July 2020.
Once you’ve submitted your claim, you will be told straight away if your grant is approved. HMRC will pay the grant into your bank account within 6 working days.
You must keep a copy of all records in line with normal self-employment record keeping requirements, including:
You will need to report the grant:
HMRC will use the figures on your tax returns for your total trading income (turnover), then deduct any allowable business expenses and capital expenditure.
Allowable expenses include:
It also includes:
HMRC will not deduct from your trading profits:
You must tell HMRC if you think you:
You should tell HMRC as soon as possible if you know you’ve been overpaid or are not eligible for the grant. You may have to pay a penalty if you do not tell them.
The scheme is administered by Invest Northern Ireland on behalf of the Department for the Economy. The Newly Self-Employed Support Scheme (NSESS) will offer an initial one-off taxable grant of £3,500 to newly self-employed individuals (sole traders and those in partnerships) that meet the criteria outlined below.
The scheme will close to applications on 5 February 2021.
Self-employed parents whose trading profits dipped in 2018/19 because they took time out to have children will be able to claim for a payment under the Self-Employed Income Support Scheme (SEISS).
The scheme requires claimants to have traded in 2018/19 with their profits making up at least half of their total income. They must also have submitted a self-assessment tax return on or before 23 April 2020 for the 2018/19 tax year.
The government has ensured parents, including mothers, fathers and those who have adopted, who took time out of trading to care for their children within the first 12 months of birth of the child or within 12 months of an adoption placement, will now be able to use either their 2017-18 or both their 2016-17 and 2017-18 self-assessment returns as the basis for their eligibility for the SEISS.
They will also need to meet the other standard eligibility criteria for support under the SEISS.
Further information will be published in early July.
If you’re self-employed, Income Tax payments due on the 31 July 2020 under the Self-Assessment system will be deferred until the 31 January 2021.
Anyone who is self-employed is eligible and no application is required.
HMRC will discuss your specific circumstances to explore:
The AND business team is here to support you.
For further information or if you need help and advice, please get in touch via email or telephone 028 9147 3788.
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