Self-employed taxpayers who failed to file their tax return by 02 March 2021 will not be entitled to further support under the Self Employment Income Support Scheme (SEISS), it has been revealed.
The alarming change comes after the initiative was extended to include the newly self-employed for the first time.
Under the SEISS, eligible taxpayers can claim up to 80 per cent of three months’ average trading profits, paid out in a single instalment capped at £7,500 in total.
However, eligibility for the scheme will now be based on submitted 2019/20 tax return information.
But to receive any support at all, you must have traded in 2019/20 and 2020/21 and submitted your tax return by 02 March 2021.
It means that up to one million self-employed traders whose returns are still outstanding will not be eligible for the fourth and fifth grant.
This comes in addition to the usual requirements:
- Your trading profits must be no more than £50,000 and at least equal to your non-trading income.
And you must either:
- Be currently trading but are impacted by reduced demand due to coronavirus; or
- Have been trading but are temporarily unable to do so due to coronavirus.
And declare that:
- You intend to continue to trade; and
- You reasonably believe there will be a significant reduction in your trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus.
Newly self-employed taxpayers will also have to declare their eligibility by confirming their identity and demonstrating business activity by providing three months’ worth of bank statements.
HM Revenue & Customs (HMRC) said it will contact those needing to complete pre-verification checks over the next 10 business days.
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