Self-employed traders risk missing out on any further government grant funding from the Self-Employed Income Support Scheme (SEISS) if they do not act immediately! It is imperative that the self-employed act swiftly and respond to any emails issued by HMRC about their business by 20 November 2020 or they may become ineligible for further SEISS assistance.
Who received emails and how do you reply?
Around 24,000 self-employed traders who have already received SEISS grant assistance at some stage this year received emails from HMRC in October asking whether they were still trading. HMRC only issued these emails to people who it believed have ceased trading based on its data and records received.
The taxpayer is asked to respond to HMRC by completing the online form confirming whether they have ceased trading. If the business ceased trading on or before the day they applied for any SEISS grant they will have to repay the funding in full!
It is important to note that tax agents and advisers will not have received this email on behalf of their clients, so it is vital that all self-employed traders check their inbox, junk and spam boxes for emails received from legitimate HMRC URLs.
When does the SEISS portal reopen for the third wave of grant funding?
The portal for the third SEISS grant will open on 30 November 2020 and the funds should then be paid within six working days. The third grant will be calculated as 80% of the trader’s average annual profits (average based on 2016/17 – 2018/19 profits reported), and paid for a three-month period, capped at £7,500.
Who is ineligible or excluded from the SEISS?
Any self-employed individuals who commenced trading on or after 6 April 2019;
- Any self-employed individuals with self-employed profits making up <50% of their total taxable income; and
- Any self-employed individuals with average annual profits exceeding £50,000, even if their income dropped drastically due to Covid-19.
At RB+, our job is to be proactive to allow our clients to act promptly should there be any radical changes to guidance or government driven legislation. We take pride in providing bespoke advice and helping our clients protect their businesses and livelihoods. If you are worried about the future, have any queries on our Blog; or want to know how we can assist you with the survival of your business, get in touch today.