HMRC SEISS To Claim or Not?

[Gnarlyoak]

Just a cautionary note to any self employed freelancers considering making a claim under the governments Self Employed Income Support Scheme (SEISS) grant.

I spoke earlier today (online) to an advisor at HMRC, to clarify my personal eligibility for this scheme and thought I would post the outcome here to just help clarify who should and shouldn't claim under this scheme, the deadline for which ends tonight for those that have already received notice from HMRC that they are eligible to apply.

 

Now on paper this scheme appears to be offering free money in the form of a grant of 80% of your profit earnings based on the monthly average of your combined previous 3 years tax returns x 3. But there are caveats to this and if you do apply you must be able to demonstrate and show proof that you had a genuine loss of all or most of your expected earnings. Now having worked as a freelance climber for the past 10yrs I know sometimes my monthly turnover/earnings can fluctuate year on year but know that roughly speaking the annual amount turned over/earned balances out in the end. So try not to fall into the trap off thinking that because maybe half your work has dried up these last couple of months, you are perfectly entitled to claim HMRC's grant hand out. You are not. If you do and are caught out you will have to pay it back. Every penny. And probably pretty damn quick too less other penalties be imposed, I'm guessing.

 

You can and should apply for this grant if you have lost all or most of your income since the lockdown was implemented in March, either because you were unable or unwilling to work. Not to be accused of finger pointing but just to put into context what unable/unwilling is meant in this example. Unable = No one was employing you: Unwilling = You're self isolating because you are in, or were looking after someone in the "at high risk" groups.

 

You cannot and should not apply for this grant (and this it turned out was applicable to me personally) if you have still been actively working and making an income during the lockdown period thus far even if your turnover might be down slightly compared to the same period in previous years. Things have been a bit quieter than normal for me, probably down by about a third. But, I have worked and I have earned an income, I am therefore ineligible to apply for this grant.

 

I admit to having a slight bit of a moral dilemma about considering to apply for this grant or not, on the one hand should I help bankrupt the economy whilst also cocking a snook at all those poor blighters in dire straights that have been prevented making a living through no fault of their own, to feathering my own nest to tide me over bad times that might come further down the road when the national & global economies go into melt down to pay for this mess or using the monies to buy some shiney new things to try and help kickstart those struggling economies. In the end I asked HMRC for advice, see above.

 

The upshot is, if you've done nowt and earned nowt since C19 lockdown, claim away and bloody good luck to you and more power to your elbow. If you've managed to keep at  it despite the lockdown madness & chaos, don't take the piss and make a dodgy claim or HMRC will be all over you like a nasty rash and you will be made to cough every single penny of your ill gotten gains.

Edited May 18, 2020 by Gnarlyoak

[Dave the dog]

Chancellor's statement on coronavirus (COVID-19): 26 March 2020 - GOV.UK

WWW.GOV.UK

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The Chancellor Rishi Sunak today announced the next economic steps to help...

 

[Gnarlyoak]

Interesting little nugget you've highlighted there DtD.

Seems that "Nicola" from HMRC's online help desk sold me a complete kipper about who was & was not eligible! Either that or she's been kept out of the loop on the Chancellor's need to know list.

[scotspine1]

It's very easy to apply for this money and ALL self employed people are eligible if their profit is under £50K.

 

It's been put in place to help with loss of income from the Covid crisis.

 

If you're down by a third that's significant. You can prove this by showing HMRC your turnover figures from March to June the three previous years on your tax returns (compared to this year). 

 

Apply now before you miss the opportunity.  

 

Enter your Tax UTR number and N.I. number here, it tells you if you're eligible, then you follow the steps provided. 

 

Check if you can claim a grant through the Self-Employment Income Support Scheme - GOV.UK

WWW.GOV.UK

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If you're self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) find out if...

 

 

 

 

 

[Dave the dog]

If you’ve been affected at all & are thinking of applying you can always put the money to one side/ separate account,  if your worried about it.

[Joe Newton]

I'd be careful posting advice and guidance with nothing to back it up but a phone call. 

 

The only stipulation that I've seen when reading the government criteria is that your business must've been adversely affected. There's no stipulation of what degree you have been affected.

 

 

[Mark Bolam]

Everyone knows in the future HMRC will be gunning for a load of hairy-arsed tree climbers who have taken this cash.

 

It will be their absolute top priority.

[waterbuoy]

On 19/05/2020 at 15:01, Gnarlyoak said:

Interesting little nugget you've highlighted there DtD.

Seems that "Nicola" from HMRC's online help desk sold me a complete kipper about who was & was not eligible! Either that or she's been kept out of the loop on the Chancellor's need to know list.

It has been announced that the scheme is being extended for another three months, albeit at a slightly reduced rate.  You should be able to apply for the new scheme (I think in August), and are able to continue working whilst claiming the grant.  All you are declaring is that Covid has affected your ability to work.

[htb]

Wont need to work this yr then...…..

[eggsarascal]

18 minutes ago, htb said:

Wont need to work this yr then...…..

Nope, at the moment it seems like you can toss it off til September. Long time, but they make the rules.