Tonight’s announcement from the Chancellor has been long-awaited.
Last week we heard of the Coronavirus Job Retention Scheme, and the self-employed have been waiting since then for something similar. It has been an anxious time, but tonight’s announcements brought new financial help.
So here are the details that we know:
- You will be funded under the Self Employed Income Support Scheme (SEIS)
How do I apply?
Update 13 May 2020: Please check our new blog which has step by step instructions on how to make your claim
- HMRC will contact you now to ask you to check your eligibility via this online portal.
- So do go ahead and check.
- You will need your UTR (10 digit tax reference) and your NINO (national insurance number).
- It will tell you whether you’re eligible or not.
- If you’re eligible you’ll be given a date from 13 May 2020 onwards to make your claim.
- If you’re not eligible, you can appeal by following the online instructions.
- You will need your own government gateway account.
- Payment will be made directly into your bank account, early June 2020.
- More info here from HMRC on checking your eligibility
- Apply for the Bounce Back Loan or Coronavirus Business Interruption Loan in the meantime.
What will I receive?
- 80% grant will be calculated on 3 years’ average profits to 5 April 2019.
- You will receive an advance payment as soon as you apply.
- Initial grant will cover the 3 months to 31 May 2020, but will be reviewed if necessary.
- Grants will be up to £2,500 per month (same as the employed funding).
- Grants are calculated on 80% of your average profits over the last 3 years, or less, if you started self-employment in the 3 years to 5 April 2019.
- Grant will be available early June, and will be backdated to 1 March 2020.
- It’s a non-repayable grant, but taxable.
- You will receive an advance payment as soon as you apply.
- Initial grant will cover 3 months to 31 May 2020, but will be reviewed if necessary.
- Grants will be up to £2,500 per month (same as the employed funding).
- You can still work and claim.
Who can’t apply:
- If you have started trading since 5 April 2019 there is no way to work out your profits without risking fraudulent claims.
- If your average profits are over £50,000 you can’t claim.
- Directors should claim the Job Retention Scheme Grant for their salary.
- Dividends will not come into the claim.
- Apply for Universal Credit (see below). if you’re not eligible for for the self employed grant.
What do I do in the meantime?
- Use the July payment on account you have saved, as this is not due until January 2021.
- Apply for a Bounce Back Loan or Coronavirus Business Interruption Loan.
- Do anything you can that’s safe to generate work and an income.
- This may mean using your imagination! How else can you encourage customers to buy from you?
- Apply to extend your bank overdraft. All major banks are giving better interest rates, and extending overdrafts.
What if I can’t claim?
- You should apply for Universal Credit.
- You will receive an initial advance once you’ve got your Universal Credit claim through.
- You will need to pay back your initial advance.
- Allowances have been increased, and if you also claim housing allowance, you could receive up to £1,800.
I’m employed. What help is there for me?
- Check out our separate blog on the 80% funding for employees.
What else do I need to know?
- Check out our main COVID-19 resource page.
- Please also join our private private Facebook group for small businesses
- Sign up for our Weekly Webinars.
- Sign up for our regular Newsletters.
We’re here for you.
Please get in touch on any of the above, or if you’d just like a chat, or call the office on 01432 273400.
We’re all working from home now, but your message will be passed straight to the right team member.
If you’d prefer to book a time to speak to me, I’ve freed up more time in my calendar for 30 minute zoom calls.
Please find and book a slot here.
You can also call, text or WhatsApp me on 07813 303849.
Stay Strong. Stay Safe
