5th SEISS Scheme claims from Late July 2021

The 5th SEISS grant can be claimed online from late July 2021.

If you’re eligible based on your tax returns, HMRC will contact you in mid-July to give you a date that you can make your claim from. It will be given to you either by email, text message, letter or within the online service.

You’ll need to confirm that you meet other eligibility criteria when you make your claim.

You must make your claim on or before 30 September 2021.

Claim the fifth grant if you think that your business profit will be impacted by coronavirus (COVID-19) between 1 May 2021 and 30 September 2021.

Can I claim?

To claim you must meet all of the below criteria:

  • You must be a self-employed individual or a member of a partnership.
  • You must also have traded in both tax years 2019 to 2020 and 2020 to 2021
  • You cannot claim the grant if you trade through a limited company or a trust.

You must have:

  • submitted your 2019 to 2020 tax return on or before 2 March 2021
  • trading profits of no more than £50,000
  • trading profits at least equal to your non-trading income

Non-trading income is any money that you make outside of your business. For example, if you also have a part-time job, dividend income or a pension.

If you’re not eligible based on the trading profits in your 2019 to 2020 return, we’ll look back at previous years.

You must also confirm when you make the claim that you:

  • intend to keep trading in 2021 to 2022
  • reasonably believe there will be a significant reduction in your trading profits due to the impact of COVID-19 between 1 May 2021 and 30 September 2021

There are some circumstances that you should take into account, that may affect your eligibility, such as:

  • your return is late, amended or under enquiry
  • you’re a member of a partnership
  • you had a new child
  • you have loans covered by the loan charge provisions
  • you claim averaging relief
  • you’re a military reservist
  • you are non-resident or chose the remittance basis

If you claim Maternity Allowance this will not affect your eligibility for the grant.

Is The 5th Grant Different?

Yes. In most cases, when making your claim you’ll need to tell the HMRC about your business turnover so they can work out your grant amount.

Turnover includes the takings, fees, sales or money earned or received by your business.

To make your claim, you’ll need to have 2 different turnover figures. You’ll need to work out your turnover for:

  • April 2020 to April 2021
  • either 2019 to 2020 or 2018 to 2019

We’ll compare these figures to work out how much you’ll get.

Does Everyone Need Turnover Figures to Claim?

We will not ask you for any turnover figures if you started trading in 2019 to 2020 and did not trade in the following tax years:

  • 2018 to 2019
  • 2017 to 2018
  • 2016 to 2017

How much will I receive?

If you need to tell us about your turnover

There are 2 levels of grant. HMRC will work out your grant amount based on how much your turnover is down by after we’ve compared your 2 turnover figures.

How much your turnover is down by What you’ll get Maximum grant amount
30% or more 80% of 3 months’ average trading profits £7,500
less than 30% 30% of 3 months’ average trading profits £2,850

If you do not need turnover figures to claim

You’ll get 80% of 3 months’ average trading profits. The maximum grant amount is £7,500.

How the grant is treated

The grant is subject to Income Tax and self-employed National Insurance Contributions. It must be reported on your 2021 to 2022 Self-Assessment tax return.

The grant also counts towards your annual allowance for pension contributions. SEISS grants are not counted as ‘access to public funds’ and you can claim the grant on all categories of work visa.

For further information visit the HMRC website here.


The CIS VAT Reverse Charge – VAT’s not going to be the same for Builders from 1st March 2021!

CIS VAT Reverse Charge

In an attempt to stop fraud in the construction industry, HMRC will be introducing a domestic reverse charge which will take effect from 1st March 2021. This was delayed from October 2020.

The new CIS VAT reverse charge will only apply to certain building and construction services. It will mean that the customer will now be liable to account for the VAT on purchases, rather than the supplier, just as it currently works when dealing with businesses within the EU.

The idea is to limit the amount of VAT paid from business to business, so that fraudsters cannot syphon off the money and not pay it over to the HMRC.

Although on the whole this will not have a negative affect on most businesses, it will affect cash flow, and will of course mean yet more paperwork at a time when small businesses are under pressure already.

This information was accurate as of February 2021.

There is more information about the CIS VAT reverse charge on the HMRC website here.

Please download our full free PDF guide for a full explanation as to the new rules, or get in touch for a no obligation chat.

Download CIS VAT Reverse Charge Guide


More £££s Announced: Furlough and SEISS

Just as I sat down with a cup of tea for the first time in months, Rishi made another announcement! But this one is very much welcomed.

To give businesses certainty over the winter months, the support announced at the weekend has been extended and increased.

  • The furlough scheme will now be extended until the end of March – with the government paying 80% of current salaries for hours not worked.
  • The next self-employed income support grant (SEISS) covering November – January will also increase from 55% to 80% of average profits – up to £7,500.

Rishi Sunak said: 

I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.

It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.

Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people an

Furlough claims should be able to be made by the end of November. Claims for the 3 month SEISS grant should open at around the same time.

A further SEISS grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

The changes will ensure that people who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter.

Further Information

The eligibility criteria for this increased grants has not changed.

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
  • are currently actively trading but are impacted by reduced demand due to coronavirus
  • were previously trading but are temporarily unable to do so due to coronavirus

The grants are taxable income and also subject to National Insurance contributions.

HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course. The latest information from them is available here.

If anyone needs any advice on the SEISS grant, please contact us or follow our Facebook page.


Increased SEISS Scheme Nov 2020 – Jan 2021

The government have released revised plans for the Self Employed SEISS payment extension. There will be two grants, for the 3 month periods covering Nov 2020 to Jan 2021 and then Feb 2021 to April 2021.

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme. As Furlough has been extended at a higher level due to lockdown, they have also decided to increase the next SEISS payment

The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 80% of average monthly trading profits for November, followed by 40% of average profits for December and January. This will be paid out in a single instalment covering 3 months’ worth of profits, claimable from 30th November.

The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

The changes will ensure that self-employed individuals who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter, with roughly the same support as those on furlough.

Further Information

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
  • are currently actively trading but are impacted by reduced demand due to coronavirus
  • were previously trading but are temporarily unable to do so due to coronavirus

The grants are taxable income and also subject to National Insurance contributions.

HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course. The latest information from them is available here.

If anyone needs any advice on the SEISS grant, please contact us or follow our Facebook page.


Extended Furlough November 2020: Update

Changes have again been made to Government support after the announcement of a second lockdown last night by the Prime Minister. The Job support Scheme has been put on hold, and the Job Retention (Furlough) Scheme is continuing until the end of November.

JRS Extension – Key Facts:

  • The extended scheme will run just as the furlough in August, with employees paid 80% of their usual wages by the government. Employers will only have to pay pension and NI costs.
  • Flexible furlough will be allowed as well as full time furlough
  • The scheme will be capped at £2,500 per month. The cap reduces according to the proportion of hours not worked
  • Claims can be made in advance of paying staff, but there will be a small period of time where these changes need to be updated on the government website, so early claims may be paid after staff are paid.
  • Staff can be furloughed that have not been previously furloughed before.
  • Employers can still chose to top up payments to 100% if they wish.
  • To be eligible to be claimed for under this extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.

That last point will mean that any staff not included on a submission before March 2020, that have not been able to have been furloughed before now – can be furloughed for November. This will mean many members of staff not previously eligible can now be claimed for.

Other Support Announced

Further changes to the SEISS scheme for the self employed are expected to be announced shortly.

Businesses required to close in England due to lockdown restrictions will be eligible for the following:

  • For properties with a rateable value of £15k or under, grants to be £1,334 per month, or £667 per two weeks;
  • For properties with a rateable value of between £15k-£51k grants to be £2,000 per month, or £1,000 per two weeks;
  • For properties with a rateable value of £51k or over grants to be £3,000 per month, or £1,500 per two weeks.

If anyone needs any advice on these changes, please contact us


Revised SEISS Scheme Nov 2020 – April 2021

The government have released revised plans for the Self Employed SEISS payment extension that is to be made from November 2020. There will be two grants, for the 3 month periods covering Nov 2020 to Jan 2021 and then Feb 2021 to April 2021.

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
    • are currently actively trading but are impacted by reduced demand due to coronavirus
    • were previously trading but are temporarily unable to do so due to coronavirus

The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.

The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

The grants are taxable income and also subject to National Insurance contributions. When you will be able to claim the money has yet to be finalised.

HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

If anyone needs any advice on the SEISS grant, please contact us


Revised JSS Help for Employers – Are you JSS Open or JSS Closed?

The government have released revised plans for the new Job Support scheme that starts from 1st November 2020. This is the scheme that will replace the furlough scheme that ends at the end of the month. The new rules have changed as of yesterday, to increase help to employers.

Revised Job Support Scheme – as of 22nd Oct 2020 Announcement

The Job Support Scheme (JSS) will open on 1‌‌‌ ‌November and run for six months, until 30‌‌‌ ‌April 2021. The government has said it will review the terms of the scheme in January 2021. There are two variations to JSS – JSS Open and JSS Closed.

The UK government announced yesterday it will significantly increase the generosity and reach of its winter support schemes to ensure livelihoods and jobs across the UK continue to be protected.

JSS Open

  • Will provide support to businesses that are open where employees are working shorter hours due to reduced demand
  • Employees will need to work at least 20% of their usual hours. Employers will continue to pay employees for the hours they work.
  • The UK government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75 per month.
  • Employers will pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if they choose.
  • Employers will also cover all employer National Insurance and pension contributions.
  • This means employees should receive at least two thirds of their usual pay for hours not worked.

The caps reduce according to the proportion of hours not worked. Further guidance on this will be available on GOV‌‌‌‌.UK shortly.

JSS Closed

  • Will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.
  • UK government will fund two thirds of employees’ usual wages for time not worked, up to a maximum of £2,083.33 per month.
  • Employers will not be required to contribute, but you can top up the government’s contribution if you choose to. You will still need to cover all employer National Insurance and pension contributions.
  • This means employees should receive at least two thirds of their usual pay for hours not worked.

What Other Differences are there from Furlough?

  • If you fall under JSS Open and your workers do not work any hours, you cannot make a claim.
  • Employers will only be able to claim in arrears from 8th December – they will need to pay their workers before they receive any money.
  • For the first time, employees will be able to check if their employer has made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV‌‌‌‌.UK, by searching ‘Personal Tax Account: sign in or set up’.

If anyone needs any advice on the new measures, please contact us


New Coronavirus Business Support Sept 2020 – Help for Employers and Self Employed

The government have today delivered a statement setting out plans to help workers and businesses hit by new coronavirus restrictions.

It includes plans for a jobs support scheme to replace furlough, help for the self-employed, business loans and VAT cuts.

Here is a summary of the main points. Many details have not yet been released – we will update our website as soon as more information is known.

Jobs Support Scheme

  • Under the scheme, the government will subsidise the pay of employees who are working fewer than normal hours due to lower demand
  • It will apply to staff who can work at least a third of their usual hours
  • Employers will pay staff for the hours they do work
  • For the hours employees can’t work, the government and the employer will each cover one third of the lost pay
  • The grant will be capped at £697.92 per month
  • All small and medium sized businesses will be eligible for the scheme
  • Larger business will be eligible if their turnover has fallen during the crisis
  • It will be open to employers across the UK even if they have not previously used the furlough scheme
  • The scheme will run for six months starting in November

How could the new Jobs Support Scheme work?

If an employee works reduced hours the employer pays for that. And in addition, the employer and government pay one third of the lost pay each (up to the cap).

So, for someone on £2,000 a month working 50% hours, they would get £1,000 normal pay plus £333 extra from their employer and £333 from the government.

We believe the cap relates to the proportion of pay from the government, and does not include the payment by then employer.

Support for the self-employed

  • The chancellor is extending the self-employed grant on similar terms to the jobs support scheme
  • A grant will be available to those eligible for the Self-Employment Income Support Scheme Grant
  • The grant will cover three months’ worth of profits for the period from November to the end of January
  • It will cover 20% of average monthly profits up to a total of £1,875
  • A further grant will be available to the self-employed to cover February 2021 to the end of April

Business loans

  • Bounce Back Loans will be extended from six years to 10, cutting monthly repayments by nearly half
  • Coronavirus Business Interruption Loan Scheme lenders will also be able to extend the length of loans from the current maximum of six years to 10 years
  • The chancellor is also extending the deadline for the government’s coronavirus loan schemes to the end of November
  • Businesses struggling can choose to make interest only payments for six months and those “in real trouble” can apply to suspend repayments altogether for six months
  • Businesses will not see their credit rating fall as a result, the chancellor says

Taxes

The 15% emergency VAT cut for the tourism and hospitality industries will be extended from January 2021 to 31 March

  • Business who deferred their VAT bills will be able to pay back their taxes in 11 smaller interest-free instalments
  • Self-assessment tax payers will be able to defer tax payments to January 2022. More details are not available at this time.

If anyone needs any advice on the new measures, please contact us


FreeAgent Mobile App – Run Your Business from your Phone!

The FreeAgent mobile app has regular improvements, and now has the functionality to do most of your daily business admin. Creating and sending invoices, checking that you customers have paid you, and adding receipts and expenses can all now be completed during your afternoon coffee break on site!

Features of the app include:

  • Keep your accounts up to date when you’re on the go
  • Get a clear overview of your bank balances, profit and loss and future tax deadlines
  • Snap expense receipts on the go and upload them to your FreeAgent account
  • Create, send and track invoices and see who owes you what at a glance
  • Track billable and unbillable time when you’re away from your desk
  • Reconcile unexplained bank transactions while you’re on the move

If you have FreeAgent but have never used the app, download it now and use your normal login to access it. Please see the link below – it is available on Apple or Android.

https://www.freeagent.com/features/mobile/

If you are a client and would like some help with using the app, just let us know.

If any one has any questions please contact us and we will be happy to help.


Self Employed Scheme Phase 2 Claims Open from Today.

The SEISS Phase 2 Claim window opens today. Please find below a link to the government website where you can check eligibility, and claim for, the second SEISS payment. You should be able to check eligibility even if you have not been contacted by the HMRC since you received the first claim. If you were not eligible for the first claim, you will not be eligible for this one.

SEISS Website

This second claim will be for 70% of 3 months of their average income from 2016-19, capped at £6,570. This is expected to be the final payment under the scheme.

To be eligible you would need to:

  • Have traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
  • Have traded in the tax year 2019 to 2020
  • Intend to continue to trade in the tax year 2020 to 2021
  • Were eligible for the first SEISS grant (even if you did not claim it)
  • Have had a trade which was still adversely affected by Coronavirus on or after 14th July 2020

Only people who’s self employed income is more than 50% of their total taxable income for the year are eligible.

Your business could be adversely affected by coronavirus if, for example:

  • You’re unable to work because you:
    • are shielding
    • are self-isolating
    • are on sick leave because of coronavirus
    • have caring responsibilities because of coronavirus
  • 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

You should keep any evidence that your business has been adversely affected by coronavirus at the time you made your claim, such as:

  • business accounts showing a reduction in turnover
  • confirmation of any coronavirus-related business loans you have received
  • dates your business had to close due to lockdown restrictions
  • dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities

You will need to report both grants:

The grant should be treated as income received on the day it’s paid for any Universal Credit claims or tax credit changes.

If any one has any questions please contact us and we will be happy to help.