The coronavirus pandemic has changed the world we live in on an unprecedented scale and this has had a huge impact on peoples livelihoods with many small businesses relying on loans and other support measures put forward by the government to stay afloat.
For self-employed individuals the government announced a scheme to support them by paying out a grant based off 80% of their average monthly profit over the past 3 years of upto £7,500 a month to assist them through these turbulent times.
The Self Employed Income Support scheme is now open to applications from the 13th May 2020 and you will have been given a date & time you are eligable to apply from, here is what you will need to make the claim.
1. Government Gateway details
In order to make a claim you will need to log in through HMRC’s website using your Government Gateway details, if you have any issues or need to register please visit HMRC’s guide here .
2. UTR Number
One of the first pieces of information HMRC will require in order to process your claim is your UTR number (sometimes refered to on paperwork as Tax Reference).
Providing your UTR number will allow HMRC to calculate how much will be due to you off your profits over the last 3 years self-assessment tax returns submitted.
3. National Insurance Number
Anther piece of information required when applying for the support scheme is your National Insurance number, this along side your UTR number will ensure that the amount you receive is correct.
4. Bank Details
In order for HMRC to process the claim you will need to enter your bank details where you would like any money due to be paid into. You will also need to inform HMRC if the bank account is a personal or business account & provide the address the account is registered to.
If the claim is successful HMRC is aiming to pay any money due into bank accounts 6 working days after applying.
5. E-mail Address
If there are any problems processing your claim HMRC will need to contact you therefor when applying for the grant you will also need to input your e-mail address & telephone number.
The scheme is intended for individuals to complete and apply themselves, HMRC has been very adamant that whilst accountants & agents will be able to advise you on the figures you will be required to complete the application yourselves.
Also please be aware that whilst this is a grant and does not need to be paid back it is liable to tax & national insurance and should be included in your accounts & self-assessment tax return for year ending 5th April 2021.
Unfortunately not all self-emplpoyed individuals can access this help – for example, if you earn more than £50,000 a year, or if less than half of your income is from self-employment. If you don’t meet the eligibility requirements, unfortunately you won’t be able to claim, but there are other things you can try:
- Small Business Bounce Back Loans
Since Monday 4 May, the new 100% state-backed bounce back loans, for up to £50,000, have been available. They’re interest-free and payment-free in the first year.
- Business Interuption Loan
The temporary Coronavirus Business Interruption Loan Scheme is open to self-employed people and offers access to loans, overdrafts, invoice finance and asset finance of up to £5 million for up to six years.
The scheme is now open for applications, and is offered by all major banks. Read more on the Government’s Business Support website.
- Income Tax Deferral
If you have income tax payments due in July 2020 under the self-assessment system, you can defer them until January 2021.
If you require any help or advice on any support mentioned above please don’t hesitate to get in contact with us here