Self-Employment Income Support Scheme:
Claims for the fifth grant can be made when the online claims service opens in late July. From mid-July, HMRC will be contacting customers who may be eligible to let them know their personal claim date. This will be the earliest date they can make their claim.
The fifth grant will be determined by a turnover test for most customers. The test considers how much the customers’ turnover has gone down by in the 2020-21 tax year due to the pandemic.
Eligible customers for the fifth SEISS grant that intend to claim, may need to calculate their 2020-21 turnover figure. HMRC will contact customers from mid-July to let them know if they need to do this. Customers do not need to submit their 2020-21 Self Assessment tax return at this time, even though HMRC is asking them for their 2020-21 turnover. The deadline for the 2020-21 Self Assessment tax return is the 31st of January 2022.
SEISS grants are taxable and subject to self-employed National Insurance contributions, which means they need to be reported on tax returns.
Time to Pay (HMRC)
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service. This support is available now, and arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
HMRC has announced that Self Assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by the 1st of April 2021.
HMRC has also set up a helpline to support businesses and self-employed people concerned about not being able to pay their tax due to Coronavirus. Anyone who is running a business or is self-employed and is concerned about paying their tax due to COVID-19 (Coronavirus), can call HMRC’s helpline for help and advice: 0800 024 1222.
Further Self-Employment Support
For self-employed people, the Government has also:
- deferred income tax self-assessment payments for July until the end of January 2021
- suspended the minimum income floor for twelve months, meaning self-employed people can now access Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees.
- Those on contributory ESA will be able to claim from day 1, instead of day 8. The Government has relaxed the requirement to physically attend a jobcentre, everything can be done by phone or online.
- Many self-employed people will also be able to access loans through the Coronavirus Business Interruption Loans Scheme.
- See 'support for individuals' page for further avenues of financial support such as help with mortgages and energy bills.
To quickly and easily find out about what financial support you may be available for, use the Government's Coronavirus Business Support Finder, https://www.gov.uk/business-coronavirus-support-finder
Page Last Updated: 06/07/21.