Self-employed? There’s a deadline looming next month

If you're yet to make your first grant claim under the scheme devised by the government, it's important to ensure you don't miss out, writes Nigel Woodward.

The Self Employed Income Support Scheme (SEISS) has offered a lifeline during the Covid-19 crisis to many of those working for themselves. There is, however, a deadline fast approaching for people who haven't yet made a claim for their first grant. If HMRC hasn't heard from you by 13th July 2020, you're in danger of missing out.

The programme is designed to provide a taxable grant to the value of 80% of your average monthly trading profits – up to a cap of £2,500 per month. It mirrors, in other words, the terms of the Coronavirus Job Retention Scheme for furloughed workers. The first grant is back-dated from March to cover the three-month period to the end of May.

You may also have read that the scheme is being extended and you'll be able to make a claim for a second – and final – grant in August 2020. This is designed to cover June, July and August, although the online service for this claim isn't yet available and we're waiting for updated guidance from HMRC on when applications can be made.

Again, it's paid in a single instalment and will cover another three-month period, but this time to a value of 70% of your average monthly trading profits – capped at £6,570 in total.

Although you must complete the process yourself, your accountant is able to advise you on the process and provide supporting information. Certainly, you must let them know about any application and provide details of the amount you have claimed and your reference number. That way, they will be able to report the figure on self-assessment tax returns. Similarly, you will need to take any grant payment into account in relation to Universal Credit or Working Tax Credit claims.

Here at Page Kirk, we're ready to assist at any point. If you need help setting up a Government Gateway ID, for instance, or want us to check the amount of grant paid or liaise with HMRC on your behalf, just get in touch by phone on 0115 955 5500 or email us at enquires@pagekirk.co.uk