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Self Employed Income Support Scheme (SEISS)
On the 4th May HMRC announced further details about the scheme.
The online service will be available on a staged basis from 13th to 18th May 2020. If you would like us to check their calculations please forward these details to us. They will tell you when you can make your claim. Once submitted you should receive your payment within 6 working days.
You can check if you are eligible using their new online tool. You will need to enter your Self Assessment UTR and then your National Insurance number to check.
A couple of important matters to note:
- HMRC will contact you to advise when you can claim via email or if they have no email address text, if neither of them a letter. These emails and texts will NOT include any links, NOR request any information.
- If you receive a text, telephone call or email claiming to be from HMRC, offering financial help or a tax refund and asking you to click on a link or to give personal information, it is a scam. You should email it to phishing@hmrc.gov.uk and then delete it.
- Whilst accountants can help clients check eligibility as agents, we have a user ID. This is not the same as the Government Gateway user ID. If you do not already have a government gateway HMRC are suggesting you set one up when you check your eligibility using the link above.
When submitting the claim, you will also need the following:
- Bank account and sort code numbers
- To sign a declaration saying you have been adversely affected by COVID-19
For those that are eligible, unlike the furlough scheme, you can continue to work in the business.
Further information about Self-Employed Income support can be found here on our website.
Bounce Back Loan (BBL)
This scheme is now live.
Key features:
- Loans of between £2k and £50k subject to cap of 25% of turnover for the calendar year 2019 (No upper turnover limit, but max loan = £50k)
- Interest rate fixed at 2.5% across all lenders
- Standard term of 6 years but can be repaid early with no penalty
- No fees, no repayments in first 12 months and interest for first 12 months covered by government
- No personal guarantees, no recovery action allowed on personal assets
- Can’t have this and CBILS, it is either or. If already had a loan of £50k or less under CBILS then can transfer it to BBL by speaking with bank
- Where the business is part of a group it is 1 loan facility per group
- Timescales are supposed to be fast
Eligibility
- Must have been impacted by COVID19
- Must have been trading by 1 March 2020 and must derive at least 50% of turnover from trading activity
- Can’t be in bankruptcy, liquidation or debt restricting process
- There are some state aid tests to be applied
Our advice is to approach your own bank first, but you can approach others. The list of accredited lenders can be found here.
Further information about Bounce Back Loan (BBL) can be found here on our website.
Additional grants for small businesses
On Saturday 2nd May the government announced additional grants that will be distributed by the local authority. It is aimed on those organisations with fewer than 50 employees who have fixed property related costs which are not eligible for other current schemes. In particular:
- Businesses in shared spaces
- Regular market traders
- Small charity properties (that meet the criteria for Small Business Rates Relief)
- Bed and Breakfasts that pay council tax rather than business rates
The announcement can be found here.
Further information and support can be found here on our website.
Please feel free to share this email with business colleagues.
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