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The Chancellor Rishi Sunak has increased the third SEISS (Self Employed Income Support Scheme) to 80%.

 

Previously the Chancellor had announced that the third support payment for the Self Employed, would be capped at 20% of their average net profit over the last three years. However due to mounting pressure after The Prime Minister announced that local areas could now face 3 different lockdown measures, Mr Sunak changed his stance and increased the payment to 80%.

 

As noted on the HMRC website, "The UK Government recognises the continued impact that coronavirus (COVID-19) has had on the self-employed and has taken action to provide support.

 

The Self-Employment Income Support Scheme Grant Extension provides critical support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and February 2021 to April 2021."

Starting from 1st November, those who are eligible will be able to claim the third income support payment, and then again in January, a 4th claim will also be available. Its unclear at the moment how much the 4th payment will be.

 

Who Can Claim.

HMRC sets out the eligibility criteria as follows:

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:
    • are currently actively trading but are impacted by reduced demand due to coronavirus
    • were previously trading but are temporarily unable to do so due to coronavirus

What the Grant Covers

The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

 

The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.

 

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.

 

The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.

 

The grants are taxable income and also subject to National Insurance contributions.

 

How to Claim

The details regarding how to claim have not yet been published, but we believe it will be pretty similar to the first two grants, you can find out more information by reading our guide here.

 

The Chancellor Mr Rishi Sunak has announced an extension to the current job support scheme, which will see government pay the employee two thirds of their usual wage should they face local lockdown restrictions.

 

This comes after the announcement of the JSS (Job Support Scheme) which we spoke about previously.

 

Announced on Friday 9th October 2020, dubbed Restricted Furlough 3.0, the announcement was made in light of the increasing numbers of Covid-19 infections.

 

Mr Rishi Sunak said, that in order to protect jobs, we must "evolve as the crisis and our health response evolves".

 

Eligibility

To be eligible, an employee must be furloughed for a minimum of at least 7 days at a time, they will then receive 66% of their wages.

They must also have been on an RTI submission before 23rd September 2020.

 

The employer will be required to make a payment to the employee up front, and cover the cost of National Insurance and Pension contributions, before they are able to claim back the money from the government.

 

The employer can then claim back the cost of those wages, however they will not be able to claim back the National Insurance or Pension Contributions.

 

In other words, an RTI submission and a payment to the employer must be made, before any claim can be done.

 

How is the employee affected

Under the new restricted furlough, the employee must lose around a third of their usual wages, and in most cases their employment contract will need to be amended to allow for these changes.

 

Employers will not be able to make up the third of wages lost due to being on the restricted furlough.

 

When can the employer claim

The new portal to make the restricted furlough claim will not open until 1st December 2020, and so employers will need to ensure they have already paid their employees, whether that be by using any cash reserves or applying for a loan to cover the cost.

 

How long will this scheme last

The scheme will last for six months, running until 31st March, however the scheme will be reviewed by government in January 2021.

 

Further help for business

Local lockdown grants were announced in September, whereby a business can claim up to £1,500 every three weeks, if they find their business has been affected by local lockdown measures.

 

However, this has now been revised to include grants of up to £3,000 per month, payable every two weeks.

The amount of grant available will depend on the size of the business, and will be calculated based on the businesses rateable value.

 

For small businesses with a rateable value below £15,000, up to £1,500 per month will be available to claim.

 

For those with a rateable value between £15,000 and £51,000 will be able to claim £2,000 per month.

 

Its important to note that these government grants will only be available to those in England.

 

Scotland, Wales and N. Ireland will set out their own response to local lockdown measures by using the £12.7 Billion set aside for them from the UK Government.

 

Courtier and Courtier understand that the new Job Support scheme can be very tricky to get right, and so if you require any help in making sure you claim the correct amount of furlough, contact us today.

 

If you have ever received an income from letting your property with Airbnb, but have not notified HMRC of this income, you must do so now.

 

Airbnb have used HMRCS Connect Data Analysis to supply them with all details regarding anyone who have let their properties through Airbnb.

 

The data will allow HMRC to target any one who has received income from letting their property but have failed to notify them of this via Self Assessment.

 

The years in which Airbnb have notified HMRC are 2017-18 and 2018-19 as shown in Airbnb's UK Accounts statement for the year 31st December 2019.

 

The deadline for HMRC to open an enquiry in to 2018-19 is 31st January 2021, or 15 months from when the 2018-19 Self Assessment was submitted.

 

However, discovery rules means that if HMRC find that the income was not declared or incorrectly declared, they do have the power to enquire in to income up to 20 years previous.

 

What can I do now?

You do have a number of options available to you, you are able to amend your 2018-19 Self Assessment up to 12 months after the submission, so if you are within that time, this is the easiest route to declaring the income for that year.

 

If you have undeclared income from prior years, or you are out of time to submit an amendment, you can notify HMRC under their Let Property Campaign Disclosure regime.

 

The advantage to using the Let Property Campaign is the penalties for failing to disclose this income will be greatly reduced, compared to just letting HMRC catch up with you. Interest will be charged on any tax not paid on time.

 

What do I need to declare?

If your only letting income from letting part of your property is below £7,500 then this is covered under the Rent-A-Room Relief, and so no tax would be charged, nor would there be an obligation to report it to HMRC, however, if you receive lettings income from more than one property and it is above £1,000 then you are required to report this.

 

If you let more than one property you can take advantage of the £1,000 Trading Annual Allowance instead of the Rent-A-Room relief.

 

In any event, its likely, that if you have received any income from letting part of or more than more property, HMRC will be in contact soon to enquire in to non disclosure of that income, so you must act now, to reduce any potential penalties you will receive.

If you are unsure what to do, or need someone to disclose your income for you, we are hear to help. We can make sure any undisclosed property income is declared as soon as possible and mitigate any potential penalties that will arise from not disclosing.