APH Accountants COVID-19 Business Support Update 26/03/20
In light of tonight’s announcement focusing on the self-employed I thought I would get this edition out as soon as I could.
My apologies if I haven’t answered any texts or calls after tonight’s announcement but thought the time would be better spent trying to answer as many questions as possible this way.
Of course, take the time to digest the information and please feel free to call, text or whatapp or message me (not tonight as I am shattered!). We are doing our level best to answer every single query – but if we have missed anyone please do get in touch.
Contact Details for Staff are below:
Office Number: 0151 630 4542 Email: firstname.lastname@example.org
Paul White: 0151 556 7247 Email: email@example.com
Helen White: 0151 556 7241 Email: firstname.lastname@example.org
Matt Newman: 0151 556 7246 Email: email@example.com
Carla Ashley: 0151 556 7244 Email: firstname.lastname@example.org
Kerry Roe: 0151 556 7240 Email:
Dave Parry: 0151 556 7245 Email:
Danielle Levy: 0151 556 7243 Email:
Katy Holmes: 0151 556 7249 Email:
Lauri Murphy: 0151 556 7248 Email: email@example.com
Only a couple of things to focus on today to keep things as simple as possible
- Self Employment Income Support Scheme (SEISS)
- Who missed out
- Self Employment Income Support Scheme (SEISS)
Following tonight’s announcement of the financial help to the self-employed please find below a link to the government website for further information.
What is it
- The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by COVID-19.
- The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month.(The chancellor announced in his speech that it will be taxable)
- HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant.
- The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000.
- The scheme will be open for an initial three months with people able to make their first claim by the beginning of June.
To be eligible for the scheme you mustmeet all the criteria below:
- Be self-employed or a member of partnership;
- Have lost trading/partnership trading profits due to COVID-19;
- File a tax return for 2018-19 as self-employed or a member of a trading partnership. Those who have not yet filed for 2018-19 will have an additional 4 weeks from this announcement to do so;
- Have traded in 2019-20; be currently trading at the point of application (or would be except for COVID 19) and intend to continue to trade in the tax year 2020 to 2021
- Have trading profits of less than £50,000 and more than half of your total income come from self-employment. This can be with reference to at least one of the following conditions:
- Your trading profits and total income in 2018/19
- Your average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.
How do I access it?
- Individuals should not contact HMRC now.
- HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
- HMRC will then pay the grant directly to eligible claimants’ bank account.
- HMRC is urgently working to deliver the scheme; grants are expected to start to be paid out by beginning of June 2020.
- For eligible individuals who have not submitted their returns for 2018-19, they will have 4 weeks’ notice from the date of the announcement to file their returns and therefore become eligible for this scheme.
Before contacting us at APH Accountants Ltd to request any information in relation to your grant please wait until we are clearer on the eligibility rules and the application process.
Over the next few days we will be working on a plan to make sure we start preparing for the information required for clients to make their applications. We will being trying to do this on your behalf if we can. At the moment we do not know anymore than the above so please be patient.
- Who missed out
Although tonight’s announcements helped an enormous number of people there are those that have unfortunately missed out.
Self Employed after 6th April 2019
- If you became self-employed after 6th April 2019 then you won’t have met the eligibility criteria laid out above.
- You should check with Universal Tax Credits for any entitlement – bear in mind the lines are currently overwhelmed and may be worth holding off a few more days if possible
- Still no clear guidance on this
- Employment law guidance is suggesting that Directors can furlough, however sole directors cannot. If the company has more than 1 director then some can, but one must not
- The logic for this being there must be a director to run the company or deal with company business
- Given that the most common tax strategy for Company Directors is pay a low salary in most cases of either £719 a month or £1,041 a month then this means those that are eligible for furlough will only be able to claim 80% of this.
- The pay for Directors/Employees will be based on them being on the payroll as at 28th Feb 2020.
- Please do not ask for payroll re-submission for Feb as this would be seen as abuse of the system by HMRC and easily picked up on.
- This seems like a particularly unfortunate situation and people in this situation should look at Universal Credits / Business Loans for help
- One glimmer of hope the chancellor mentioned the “little gap they haven’t figured out how to tackle yet” – could he of been referring to company directors ? – Here’s hoping!
- Doesn’t look like there is much help about for Landlords for sure
- Two leading landlord associations have called on the government to introduce a package of measures to support the rental sector during the coronavirus outbreak
- In a joint statement, the Residential Landlords Association and the National Landlords Association said they were encouraging all landlords to work “positively with tenants to provide support where needed throughout this difficult period”. The statement continued: “To support landlords in this, we are calling for a package of measures from government and mortgage providers.
- This includes a temporary scrapping of the five-week wait before Universal Credit claimants get their first payment, pausing the final phase of the restricting mortgage interest relief to the basic rate of income tax, and ensuring lenders look sympathetically on requests by landlords for mortgage payment.
That’s all for now folks, tomorrow will bring a multitude of questions of queries – we will do our best to answer them as soon as we can.
In the meantime stay safe and we will be in touch with more updates shortly.