Self-Employment Income Support Scheme Update

The online service for claiming under the latest phase of the Self-Employment Income Support Scheme (SEISS) will open in the next few days. Here are the latest updates on the scheme and details of when HMRC will be contacting you.

Customers receiving their personal claim dates
HMRC have begun contacting eligible customers to give them a personal claim date, from which they can make their SEISS claim. HMRC will have contacted you either by email, letter or through the online service, depending on what contact details they hold.
You can make their claim from this personal claim date in late April, until the claims service closes at 11:59pm on 1 June 2021.

If you have not been contacted by HMRC
If you believe you are eligible for the scheme but are yet to hear from HMRC, their advice is to wait until the end of the month before contacting HMRC. They are inviting customers to claim on different days to ensure the system is fast and easy to use, so they can support millions of people quickly and easily.

Contacting ineligible customers
HMRC have also contacted self-employed people who have previously claimed SEISS support but are no longer eligible. There are several reasons for ineligibility, for example:
• not filing your 2019-20 Self Assessment return on or before 2 March 2021
• if the information on your 2019-20 Self Assessment return means you no longer meet the eligibility criteria,
• if you’ve permanently ceased trading.

VAT deferral – apply now to spread your payments.

The VAT deferral new payment scheme is open for all businesses who deferred paying VAT due between 20 March and 30 June 2020 and have been unable to pay in full by 31 March 2021.

You can apply now to spread these payments over several months –The sooner your business joins, the more instalments are available to you.

You can join the scheme quickly and simply online without needing to call HMRC. To find out more information, including the things you need to prepare before joining online, go to GOV.UK.

You need to apply by 21 June 2021 at the latest if they want to join the scheme online.

Self employed 4th grant available

If you have received any of the previous Self Employed Income Support Scheme grants (SEISS) you should receive an email from HMRC soon regarding your application for the 4th grant.

To apply, you’ll need to reasonably believe there is a significant reduction in your trading profits due to coronavirus between February 2021 and April 2021, and that you intend to continue to trade.

If you claim, you must also keep appropriate records as evidence of the impact on your business.

You do not need to have claimed SEISS before to apply for this round of grants, just visit GOV.UK for more information regarding the mehods for applying.

Minimum wage increase from April 2021

If you have employees you need to be aware of the increases across all ages of the minimum wage.

Rate from April 2020Rate from April 2021Increase
National Living Wage£8.72£8.912.2%
21-22 Year Old Rate£8.20£8.362.0%
18-20 Year Old Rate£6.45£6.561.7%
16-17 Year Old Rate£4.55£4.621.5%
Apprentice Rate£4.15£4.303.6%
Accommodation Offset£8.20£8.362.0%

New Self-employment grants announced.

The UK Government has today announced that the Self-Employment Income Support Scheme (SEISS) will continue until September with a fourth and fifth grant.

The fourth and fifth grants will take into account 2019 to 2020 tax returns and will also be open to you if you became self-employed in the 2019 to 2020 tax year. This means that you may be able to claim, even if you were not eligible for previous grants.

To qualify, you must have filed your 2019-20 Self Assessment tax return by 2 March 2021, at the latest.

Can’t pay your tax?

HMRC has announced they will not be charging the regular initial 5% late payment penalty if you make payment by 1st April 2021, however its not all good news; The regular payment deadline of the 31st of January hasn’t actually changed, and you will be charged interest after this date.

If you are having problems paying your self-assessment tax, and need more time to pay, you qualify for a “Time to Pay” arrangement with HMRC, you can even set this up online here. You can also call HMRC directly on 0300 200 3822 for more information.

So what is a Time to Pay arrangement? In a nutshell it allows you to spread your payments to HMRC in regular monthly instalments, up until January 2022.

If you still have not filed your Self-assessment tax return for 2019-2020, you need to do this before the 28th February to avoid penalties.

Claim your third SEISS grant now before its too late!

The deadline for claiming the third SEISS grant is fast approaching. If you are eligible, you must make your claim on or before 29‌‌‌ ‌January 2021.

As with the first and second SEISS grants, the third grant will be subject to Income Tax and self-employed National Insurance and must also be reported on your 2020-21 Self Assessment tax returns (to be submitted by 31‌‌‌ ‌January 2022).

Confirming a significant reduction in trading profits

Before you make a claim for the third grant, you must decide if the impact on your business will cause a significant reduction in your trading profits for the tax year you report them in.

HMRC cannot make this decision on your behalf because your individual and wider business circumstances will need to be considered when deciding whether the reduction is significant.

You do not have to consider any other coronavirus scheme support payments you have already received when deciding whether you reasonably believe that you will suffer a significant reduction in trading profits due to reduced activity, capacity, demand or inability to trade due to coronavirus during 1‌‌‌ ‌November 2020 to 29‌‌‌ ‌January 2021 (period covered by the third grant).

Self Assessment 2021 Late Filing Penalties.

HMRC has announced that Self Assessment tax payers will not receive a penalty for filing 2019-20 tax returns late, as long as you file online by 28‌‌ ‌February 2021.  If you have not yet filed, you are encouraged to do so by 31‌‌ ‌January 2021, if possible.

You still need to pay your Self Assessment tax bill by 31‌‌ ‌January 2021! Interest will be charged from 1‌‌ ‌February 2021on any outstanding liabilities. You can pay online, or through your bank, or by post before you file.

If you cannot afford to pay by 31‌‌ ‌January 2021, you may be able to set up an affordable plan and pay in monthly instalments. But you will need to file your 2019-20 tax return before setting up a time to pay arrangement. More information is available on GOV.UK.

Self Assessment Tax Return Online and Limited Company Accounting Services

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