Yesterday the Chancellor finally announced the long awaited SEISS, we say finally but in reality this, along with the other employment packages and loan support schemes have been put together in a little under 10 days in all, which is extraordinarily quick for legislation of this magnitude needing to come into force. What is normally done with years of planning is being implemented in just weeks and it is not surprising therefore that there will unfortunately be those that fall between the cracks. The key points from the SEISS are as follows:
The scheme currently runs from 1 March 2020 to 31 May 2020.
You can receive a taxable grant of 80% of your “trading profit” up to a maximum of £2,500 per month.
You will not qualify if profits are over £50,000 p.a. on average for the three years.
The “trading profit” will be based on an average of your “trading profits” for the 3 tax years 2016/17, 2017/18 & 2018/19.
You do not need to have traded in all 3 years but you MUST also have traded in 2019/20 (not one of the average years)
You must continue to trade (subject to current restrictions) in 2020/21.
Your self-employment income must be over 50% all of your total income.
You must have lost trading / partnership profits due to COVID-19 (more on this below)
If you have not filed a Tax Return for 2018/19 you have until 23 April 2020 to do so.
HMRC will automatically calculate the amount and pay it into your bank account (this is expected in June).
What concerns us is the highlighted condition above, there is no further clarity on this at this point but it must be assumed that unless you have a dip in profits that you are not entitled to claim it ! This is going to cause great confusion, as annual accounting wouldn’t necessarily highlight a 3 month period where no income is received. At this point we consider it is included to keep the door open for HMRC to fight expected fraudulent claims and we will continue to push the relevant authorities for further information on this point.
PLEASE DO CONTACT US IF YOU HAVE ANY QUESTIONS ON SEISS on 0208 418 3333 or email firstname.lastname@example.org
The link to the full press release is below
THE SELF-EMPLOYMENT INCOME SUPPORT SCHEME (SEISS)