Breakdown Of: The Self-employment Income Support Scheme

Being self-employed is challenging at the best of times not to mention having to deal with the effects of Coronavirus, but there is support out there for everyone.At gHawk want to make it as easy as possible for everyone to access and understand the support provided by the government.

The Self-employment Income Support Scheme (SEISS) will support self-employed individuals. As well as members of partnerships who have lost income due to COVID-19.

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

How Much You Can Receive

You can receive up to 80% of your average profits from the last 3 tax years as below. The amount you receive will be a taxable grant. You will need your profits for the following periods where applicable:

6th April 2016 to 5th April 2017

6th April 2017 to 5th April 2018

6th April 2018 to 5th April 2019

The grant payable will be up to a maximum of £2,500 per month for 3 months. The scheme will start in June. We expect that HMRC will pay the grant sum directly into your bank account, in one instalment.

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Beware of Scammers

If you receive texts, calls or emails from anyone claiming to be from HMRC, saying that you can claim financial help or are owed a tax refund, and they asks you to click on a link or to give information such as your name, credit card or bank details, IT IS A SCAM.

You should not contact HMRC, doing so will only delay the urgent work being undertaken to introduce the scheme.

More information about this can be found on HMRC website. Let us know if this affects your business and we can provide further assistance. 

Support available for businesses due to COVID-19

The impact of the ongoing coronavirus pandemic on businesses is unsettling and evolving fast.

At gHawk Accounting, we are working hard to support our clients starting with those with the greatest need. Our team is fully set up and working from home as our software is cloud based and can be accessed over the internet.

Below is a summary of the help available from the government to support businesses affected by Covid-19.  We will continue to update this page as more information is released on the support schemes available, who is eligible and how to get the assistance.

Full details are available on this government page

Ask gHawk: COVID-19 Frequently Asked Questions

We will update this page with questions we are receiving from our clients, so feel free to message us with your question and we will add to our Frequently Asked Questions.

Am I self-employed or employed?

A self-employed person trades in their own name as opposed to through an intermediary e.g. a recruitment agency of company. So, if you are a director or shareholder of a limited company and the company runs a Pay As You Earn (PAYE) Scheme – then you are an employee, and not self-employed

How do I get the support if I am self-employed?

You can claim a grant of up to £2,500 per month through the coronavirus (COVID-19) Self-employment Income Support Scheme

How do I access the grants recently announced?

Refer to the image above -your local council will write to you if you are eligible.

What taxes can I defer

You can defer VAT payments from 20 March 2020 to 30 June 2020. Income tax payments due under the self-assessment system may be deferred until January 2020. If unable to pay any other taxes, you should apply for a Time To Pay arrangement by calling HMRC on 0800 0159 559

What if I can’t pay the rent for my commercial property

The government has introduced Protection from eviction for commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction.

These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June.

There is the option for the government to extend this period if needed.

This is not a rental holiday. All commercial tenants will still be liable for the rent. Commercial tenants are protected from eviction if they are unable to pay rent.

I am an employer and may have to lay off employees as our work has run out. What should I do?

You can access up to 80% of your employees’ wages up to £2,500 per month through the Coronavirus Job Retention Scheme. This allows an employer to ‘Furlough’ their employees for up to 3 months from 1 March 2020. Furloughed employees cannot provide services to a business, otherwise a claim cannot be made under the scheme.

I am a director of a company and pay myself a salary and dividends. Are my dividends covered by the coronavirus job retention scheme?

No Sadly dividends is not covered by the scheme, but your salary is.

How can I apply for the Corona Virus Business Interruption loan?

All major banks are now offering the scheme. Speak to your bank or visit the British Business Bank website to find out the participating banks.