SEISS can provide eligible claimants with a grant based on their average trading profits over the previous three tax years. The government detail that they will work out the averaged trading profits by adding together the total trading profits and then divide them by three.
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The first grant will be paid in a single instalment and will be capped at £7,500 in total.
However, this grant can only be claimed up until midnight tonight.
Beyond this, self-employed people may be able to claim a second grant in August so long if they’re still struggling with coronavirus.
The second and final grant will be worth 70 percent of profits and it will be capped at £6,570.
To apply for the grant, a person much have the following information ready:
- A Self-Assessment Unique Taxpayer Reference (UTR)
- Their National Insurance number
- A Government Gateway user ID and password
- Bank details including account number and sort code
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It should be noted that a self-employed person should make the claim themselves as opposed to delegating the responsibility.
If a self-employed individual gets a tax agent or advisor to complete the claim it will trigger a fraud alert.
If this occurs, HMRC will need to be contacted and this will cause a significant delay to receiving the payment.
There is also a key rule in place which if broken, could end up costing the claimant greatly.
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As the government details: “You should only claim this grant if your business has been adversely affected by coronavirus and you will have to confirm this to HMRC when making your claim.
“Do not make a claim based on an adverse effect you think may happen in the future.”
“HMRC will check claims and take appropriate action to withhold or recover payments found to be dishonest or inaccurate.
“If you know you’ve been overpaid or are not eligible for the grant and do not tell us you may have to pay a penalty.”
So long as a claimant is eligible and has followed all the rules correctly the grant will be paid into their account within six working days.
While the rules for claiming may be strict, there is a certain level of easement once the money arrives.
If the claimants business recovers after a person’s claimed, their eligibility will not be affected.
To ensure smoothness throughout the process, claimants must keep evidence to ensure that their claim was legitimate.
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