May 2020

This week HMRC will start contacting self-employed people who are likely to be eligible, through a combination of emails, SMS texts and letters, to tell them what they need to do to get ready to claim.  Applications will open in tranches based on the unique taxpayer number (UTR) given to all self-employed taxpayers.

From this week, people will be able to use a new online eligibility checker. If the checker confirms that they are eligible (and they qualify due to being affected by coronavirus and because they intend to continue trading), they will be given a date when they can use the online service to make a claim from 13 May.

Payments will be made to claimants’ bank accounts from 25 May 2020 (ahead of the original June schedule)

Self Employed Income Support Scheme Eligibility checker see: https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

 HMRC have issued some more details relating to the claims for the Self-Employed Income Support. The latest guidance was issued on 1 May.

Details are in the link highlighted below.

As with many HMRC “guidance notes” issued recently, these tend to be quite basic, and, unfortunately, leave many questions unanswered.

It is hoped that HMRC may rethink the method of claim, but at this moment, the latest guidance clearly states: “Your tax agent cannot make the claim for you”, meaning we cannot apply on your behalf.

The guidance goes on to indicate that you will require: –

• Your Self-assessment Unique Taxpayer Reference Number
• Your National Insurance Number
• Your Government Gateway ID and Password
• Bank account number and sort code for payment

Contact us if you are unable to locate 1 or 2 above. However, the biggest issue is likely to be item 3.

IF YOU KNOW YOUR GOVERNMENT GATEWAY ID AND PASSWORD YOU DO NOT NEED TO TAKE ANY ACTION AT THIS TIME.

IF YOU DO NOT KNOW OR DON’T HAVE A GOVERNMENT GATEWAY ID AND PASSWORD WE RECOMMEND YOU APPLY AS SOON AS POSSIBLE TO AVOID DELAYS IN RECEIVING PAYMENT. YOU MAY BE ABLE TO SUBMIT A PAPER CLAIM (FULL DETAILS NOT YET PUBLISHED) BUT THIS WILL ALSO LEAD TO DELAYS IN PAYMENT.

Details on the application process are set out below. This will take a few days before it is ready.

If you need any assistance please contact us as soon as possible.

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000. The government guarantees 100% of the loan and there will not be any fees or interest to pay for the first 12 months. Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan. The scheme will be delivered through a network of accredited lenders.

Guidance on how to apply is given on the British Business Bank Website: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors/

Actions required:

1. Find an accredited lender – there is a link on the above page;
2. Approach them, ideally via their website;
3. Complete a short application form which self certifies that your business is eligible for a loan under BBLS;
4. If eligible you will need to complete the Banks Anti-Money laundering, fraud and Know Your Client checks;
5. The lender makes a decision.

Talk to us if you need assistance in applying for a BBBL we will do our best to help.

 Who is eligible:

Your business must be able to self‑declare to the lender that it:

• has been impacted by the coronavirus (COVID-19) pandemic
• was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
• is engaged in trading or commercial activity in the UK and was established by 1 March 2020
• is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
• is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
• derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
• is not in a restricted sector (see below)

Note: The above is not an exhaustive list – see The British Business Bank for more information.

Bounce Back Loans are available to businesses in all sectors, except the following:

• Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
• Insurance companies
• Public-sector organisations
• State-funded primary and secondary schools