Self-employed who are eligible for SEISS to be contacted by HMRC

HMRC have started contacting the millions of contractors who may be eligible for the government’s Self-Employment Income Support Scheme (SEISS) to explain the application process and help them get ready to make a claim.

The temporary scheme 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^rd April 2020 for that year.

For those who are unable to make a claim, HMRC have said that it will direct them to guidance setting out the conditions to help them understand why they are ineligible, and advice about other support that might be available to them such as:  income tax deferrals, rental support, Universal Credit, access to mortgage holidays and the various business support schemes the government has introduced to protect businesses during this time.

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.