OIC highlights HMRC support scheme for self-employed

Orkney Islands Council is encouraging those who are self-employed to go online and check to see if they are eligible for the government’s Self-Employment Income Support Scheme (SEISS) — which opens next week.

HM Revenue and Customs (HMRC) has this week started contacting around three and a half million customers who may be eligible for the scheme to explain the application process and help them get ready to make a claim.

The claims service opens on Wednesday, May 13. and is being delivered ahead of schedule, with payments reaching bank accounts by May 25, or six working days after the claim is made.

Councillor Graham Sinclair said: “For Orkney especially, due to the high levels of self-employment, it’s a welcome scheme introduced by HMRC.

“It will help to support those folk who are self-employed and whose business has been affected by the pandemic. I’m sure it will bring some folk a bit of relief at this troubling time.”

The scheme is set to benefit self-employed individuals or those in a partnership whose business has been adversely affected by coronavirus, covering most people who get at least half of their income from self-employment.  SEISS is a temporary scheme that will enable those eligible to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500 (equivalent to three months’ profits) in a single instalment.

HMRC is using information that customers have provided in their 2018-19 tax return – and returns for 2016-17 and 2017-18 where needed – to determine their eligibility and is contacting customers who may be eligible via email, SMS or letter.

Customers are eligible if their business has been adversely affected by coronavirus, they traded in 2019-20, intend to continue trading and they:

• Earn at least half of their income through self-employment;
• Have trading profits of no more than £50,000 per year; and
• Traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year.

For those who are not eligible, HMRC will direct them to guidance setting out the conditions to help them understand why they are not eligible, and advice about other support that might be available to them.

More information is available here – www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme