Wheelers Words

Stay up to date with all the latest accounting, tax and company news on our Wheelers Words blog posts.

Jun 30, 2020

Wheelers Words: COVID-19 SEISS Further Update

SEISS Update – Second grant

As detailed in our previous update HMRC have extended the Self-Employment Income Support Scheme (SEISS) scheme so that eligible individuals are able to claim a second and final grant in August 2020. They have now released further details which state in order to claim you must be adversely affected on or after 14 July 2020. They will work out your eligibility the same way as the first grant (a recap is included below). It is possible to claim for the second grant even if you have not claimed for the first one. Examples of what adversely affected means are detailed below.

This grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.

Who is eligible?

A self-employed individual and member of a partnership are eligible if the conditions are met:

–       you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year

–       you traded in the tax year 2019 to 2020

–       you intend to continue to trade in the tax year 2020 to 2021

–       your trading profits must be no more than £50,000 and at least equal to your non-trading income (this test may be subject to a three year average depending on when the trade commenced)

–       you carry on a trade which has been adversely affected by coronavirus (to claim the second grant it must have been adversely affected after 14 July 2020)

Additional guidance has been issued to help identify if you and your trade has been adversely affected by coronavirus (the last condition above). This could be evident if you are unable to work because you:

–       are shielding

–       are self-isolating

–       are on sick leave because of coronavirus

–       have caring responsibilities because of coronavirus

Or you’ve had to scale down or temporarily stop trading because:

–       your supply chain has been interrupted

–       you have fewer or no customers or clients

–       your staff are unable to come in to work

Some limited examples of what is meant by adversely affected are on HMRC’s website:

It is recommended that you record how you have been adversely affected by coronavirus so that if HMRC were to investigate in the future you can prove you meet this criterion.

It is worth noting, if you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work.

You can use link below to check if you are eligible by entering your UTR (unique tax reference) and national insurance number:

Who will not qualify for SEISS?

–       Trusts operating a trade

–       Individuals who started trading in 2019/20

–       Furnished holiday lettings

–       Individuals who do not derive more than 50% of their income from self employment

Self-Employment Income Support Scheme (SEISS) – First Grant

If you are eligible and your trade has been adversely affected, any applications for the first grant must on or before 13 July 2020 if you wish to claim this.

31 July payment on accounts

Taxpayers can choose to defer their payment on account due on 31 July 2020. There is no requirement to notify HMRC of this. If you choose to defer this payment it will be due on 31 January 2021.

Coronavirus Job Retention Scheme (CJRS) Overclaims

HMRC have now released guidance for business on how to repay an overclaim made under the CJRS scheme. If you are going to make another claim, it should be deducted form that amount. However, if you have now brought all your staff back and there will be no further claims you should repay it to HMRC. In order to do this, you will need a payment reference number which you can obtain from HMRC, by calling 0800 024 1222.

Wheelers office update

We are pleased to announce from Monday 6th July our reception will be open from 9.00 – 5.00, Monday to Friday. The phones are no longer diverted to a mobile number so will be answered by staff within the office building. Approximately half of the office staff are now back working in the office and calls will be transferred to them straight away. The people who are still working from home will continue to return calls in the same way we are at the moment.

Over the coming weeks we are trying to get more staff back in the office but within the constraints of social distancing, protecting vulnerable staff and allowing for staff who still have childcare responsibilities.

The practice would like to thank all of our clients for their patience during this difficult time and also our staff who have helped to maintain a continuity of service to you all.