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Self-Employment Income Support (SEISS) and CoronavirusJob Retention Scheme Updates

Below is a roundup of the latest information on the SEISS and CJRS which is extracted from HMRC updates provided to us. Please contact us if you need any help in making your claims.

Self-Employment Income Support Scheme Updates

The fourth grant is now open

The online service for the fourth grant is now available. The Self-Employed Income Support Scheme (SEISS) has been extended to September 2021 and details of claims for the fourth grant have now been released. This fourth grant covers February, March and April 2021.

The fourth grant must be claimed by 1 June.

There will then be a fifth grant covering May to September 2021. 

The latest grant allows the self-employed to claim 80% of their average profits for the period up to 2019/20 and is again limited to £2,500 a month.

Like CJRS there are lots of conditions that need to be satisfied, such as being self-employed in 2019/20 and continuing to trade in 2020/21 or would be doing so, if it the business had not been impacted by coronavirus.

In order to be able to make a successful claim, the self-employed profits in 2019/20 must not exceed £50,000 and must be more than 50% of the individual’s total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the four years (or shorter period) to 5 April 2020. This means that those who commenced trading in 2019/20 will now potentially be eligible for SEISS grants, having not previously qualified for the first three grants.

Although we cannot make the claim on your behalf, we can help you determine whether you are eligible and assist you with your claim if required.

Conditions for the fifth grant will be linked to a reduction in business turnover. Self-employed individuals whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. We are still awaiting further details of the fifth grant calculation.

See: Check if you can claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)

Help and support if your business is affected by coronavirus

Watch videos and register for the free webinars to learn more about the support available to help you deal with the economic impacts of coronavirus. A catch up webinar for the SEISS – fourth grant has been added. This webinar takes you through the aim of the scheme, who can apply, how much you may be entitled to, how to claim the fourth grant, and what happens after you have claimed.

See: Help and support if your business is affected by coronavirus (COVID-19) – GOV.UK (www.gov.uk)

Tell HMRC and pay back a SEISS grant

Find out what to do if you need to pay back some or all of a SEISS grant. 

You must tell HMRC if, when you made the claim, you were not eligible for the grant. For example:

  • for the first or second grant, your business was not adversely affected
  • for the third or fourth grant, your business had not been impacted by reduced activity, capacity or demand or inability to trade in the relevant periods
  • you did not intend to continue to trade
  • you have incorporated your business

You must also tell HMRC if you:

  • received more than they said you were entitled to
  • amended any of your tax returns on or after 3 March 2021 in a way which means you are no longer eligible or are entitled to a lower fourth grant than you received.

See:  Tell HMRC and pay back a Self-Employment Income Support Scheme grant – GOV.UK (www.gov.uk)

Coronavirus Job Retention Scheme (CJRS) – update

Below is a roundup of the latest information on the CJRS which is extracted from HMRC updates provided to us.  Please contact us if you need any help in making your claims.

Submit your Coronavirus Job Retention Scheme (CJRS) claims for May

CJRS claims for periods in May can be submitted now and must be made by Monday‌‌‌‌ 14‌‌‌ ‌June.

You can claim before, during or after you process your payroll. It is best to make a claim once you are sure of the exact number of hours your employees will work so you do not have to amend your claim later.

Check if you and your employees are eligible and work out how much you can claim by contacting us and we will be delighted to help you. 

Conditions of claiming CJRS grants

You must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant, so not doing so will mean you will need to repay the whole of the CJRS grant and you may not be able to claim for future CJRS grants. 

What you need to do now

  1. If you have not submitted your claim for April, but believe that you have a reasonable excuse for missing the 14‌‌‌ ‌May deadline, check if you can make a late claim here: Get help with the Coronavirus Job Retention Scheme – GOV.UK (www.gov.uk)
  2. Submit any claims for May no later than Monday‌‌‌ ‌‌14‌‌ June.
  3. Keep records that support the amount of CJRS grants you claim, in case HMRC needs to check them.
  4. Make sure you are paying employee tax and National Insurance contributions to HMRC and contact them if you are struggling to pay.

See: Action required – submit your May claims for the Coronavirus Job Retention Scheme (govdelivery.com)

Changes to the CJRS from July

The government will continue to pay 80% of your furloughed employees’ usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June.

In July, CJRS grants will cover 70% of employees’ usual wages for the hours not worked, up to a cap of £2,187.50. In August and September, this will then reduce to 60% of employees’ usual wages up to a cap of £1,875.

You will need to pay the 10% difference in July (20% in August and September) so that you continue to pay your furloughed employees at least 80% of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month.

For the hours not worked you can continue to choose to top up your employees’ wages above the 80% level or cap for each month, at your own expense.

See HMRC Covid-19 support here: Action required – submit your May claims for the Coronavirus Job Retention Scheme (govdelivery.com)

Penalties for not telling HMRC about coronavirus (COVID-19) support scheme overpayments – CC/FS11a

If you have received a grant but were not eligible or you have been overpaid, find out about penalties you may have to pay if you do not tell HRMC.

See:  Penalties for not telling HMRC about coronavirus (COVID-19) support scheme overpayments – CC/FS11a – GOV.UK (www.gov.uk)

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