Self-employment income support scheme (SEISS)

Self-employment income support scheme (SEISS)

If you are eligible, payments under the above scheme are due to be made by HMRC next month, June 2020. Readers who need financial support at an earlier date can still apply for Universal Credits as an interim measure.

Who can claim under SEISS?

To qualify for a payment under SEISS you will need to be a self-employed individual or a member of a trading partnership. You will also need to comply with the following:

• you carry on a trade which has been adversely affected by coronavirus
• you traded in the tax year 2018-19 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
• you traded in the tax year 2019-20
• you intend to continue to trade in the tax year 2020-21

HMRC have further confirmed that if you are not eligible based on the 2018-19 Self-Assessment tax return, they will then look at the tax years 2016-17, 2017-18, and 2018-9.

You will need to confirm to HMRC that your business has been adversely affected by coronavirus. HMRC will use a risk based approach to compliance.

Finally, your trading profits must also be no more than £50,000 and more than half of your total income for either:

• the tax year 2018-19
• the average of the tax years 2016-17, 2017-18, and 2018-19.

How to claim

HMRC will aim to contact you by mid May 2020 if you are eligible for the scheme and invite you to claim using the GOV.UK online service. If you are unable to claim online an alternative way to claim will be available.

The online registration page will also be updated with the steps you can take to make it easier to claim using the GOV.UK online service.

You do not need to contact HMRC, as this will only delay the work being undertaken to introduce the scheme.

Coronavirus Business Interruption Loan Scheme (CBILS)

There has been considerable commentary in the media about this support initiative as business owners – struggling to cope with the reduction in their cash resources due to the COVID-19 outbreak ? are finding it difficult to secure support from their bank.

Readers will be encouraged by the Chancellor’s recent comments when he confirmed that personal guarantees should not be requested for loans under £250,000.

The government’s offer to guarantee 80% of loans taken out and cover all the set-up and interest charges for the first year of the loan remains an attractive solution for businesses that need the additional liquidity.

If you are considering an application you will be required to produce certain evidence to back-up your request. This is likely to include:

• Management accounts
• Cash flow forecast
• Business plan
• Historic accounts
• Details of assets

The above requirements will vary from lender to lender.

An alternative scheme for micro-sized businesses

Smaller businesses may decide to apply for the “Bounce-Back” Loan Scheme that is now available. Loans can be obtained between £2,000 to £50,000 but limited to 25% of turnover.

These smaller loans are 100% guaranteed by government and with no fees or interest charges payable for the first year.

Claiming Child Benefits for new-borns

General Register Offices are currently operating with reduced capacity and with government guidance to social distance and stay at home, new parents are advised not to visit them. They can however still claim Child Benefit without having to register their child’s birth first to ensure that they do not miss out.

If they already claim Child Benefit, they can complete the form or add their new-born’s details over the phone on 0300 200 3100. They will need their National Insurance number or Child Benefit number.

Child Benefit claims can be backdated by up to 3 months.

This announcement is timely as Child Benefit payments increased from 6 April to a weekly rate of £21.05 for the first child and £13.95 for each additional child. Child Benefit is paid into a parent’s bank account, usually every 4 weeks.

Only one person can claim Child Benefit for a child. For couples with one partner not working or paying National Insurance contributions (NICs), making the claim in their name will help protect their State Pension.

Companies House support for ailing businesses

The following announcement was recently made by Companies House:

Businesses will be given additional support to help them meet their legal responsibilities under changes announced today (16 April 2020).
Companies House will temporarily pause the strike off process to prevent companies being dissolved. This will give businesses affected by the coronavirus outbreak the time they need to update their records and help them avoid being struck off the register.

In addition, companies issued with a late filing penalty due to COVID-19 will have appeals treated sympathetically.

Today’s announcement builds on measures already implemented by the Secretary of State for Business, Energy and Industrial Strategy, which give businesses the ability to apply for a 3-month extension to file accounts with Companies House.

As part of the agreed measures, while companies will still have to apply for the 3-month extension to be granted, those citing issues around COVID-19 will be automatically and immediately granted an extension.

Tax Diary May/June 2020

1 May 2020 – Due date for corporation tax due for the year ended 30 July 2019.

19 May 2020 – PAYE and NIC deductions due for month ended 5 May 2020. (If you pay your tax electronically the due date is 22 May 2020).

19 May 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2020.

19 May 2020 – CIS tax deducted for the month ended 5 May 2020 is payable by today.

31 May 2020 – Ensure all employees have been given their P60s for the 2019-20 tax year.

1 June 2020 – Due date for corporation tax due for the year ended 31 August 2019.

19 June 2020 – PAYE and NIC deductions due for month ended 5 June 2020. (If you pay your tax electronically the due date is 22 June 2020)

19 June 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2020.

19 June 2020 – CIS tax deducted for the month ended 5 June 2020 is payable by today.