Self Employed Income Support Scheme (SEISS) – Further Information Released
The government today released more information on the Self Employed Income Support Scheme (SEISS).
This scheme, as previously detailed, is for those who receive the majority of their income through self-employment, up to trading profits of £50k and have filed a tax return for the tax year 2018-19
These individuals can receive 80% of their income, up to a maximum of £2,500, to cover the drop in work seen due to the coronavirus, for the months of April, May and June
This is calculated by taking the average trading profits of the tax return for the tax year 2018-19 and the two preceding tax years
If an individual was not self-employed for the whole three years, they will just use as much of that period as they do have recorded
The new info is:
• From today (4th May), HMRC will begin contacting those who are eligible for the SEISS.
• Individuals or their agents can check their own eligibility on the following link using their UTR and their government gateway login credentials. https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
• Once the check is complete, they will be given a date when they can submit their claim
• The claims service is going to be opened on 13th May, with claims being paid out from 25th May, and after this date within 6 days.
Now Open – The Bounce Back Loan Scheme
As detailed last week, this launched today and is seen as a more accessible that the CBILs loan and is 100% guaranteed by the government.
In addition to what we previously announced last week, the following additional information is available:
• The interest rate is fixed at 2.5%, unlike a CBILs loan where the interest rate is set by lenders.
• Money can be borrowed on a term of up to 6 years
• No fees, interest or repayments are due in the first year
This has seen the minimum CBILs loan increase to £50,001 to differentiate between the schemes, so if you have taken a CBILs loan for £50k or under, then you can get this converted over to a Bounce Back Loan.
The full eligibility requirements are as follows:
• Eligible business must be based in the UK and established by 1 March 2020.
• They will need to generate at least 50% of their income from trading activity and show that this has been disrupted due to Coronavirus.
• Businesses cannot have been in difficulty on 31 December 2019 and cannot be in bankruptcy or liquidation at the time of applying for a Bounce back loan.
• Businesses that are already claiming under other Government schemes to support their business, such as CBILS or the Bank of England’s Covid Corporate Financing Facility Scheme cannot also hold a Bounce back loan. The only exception is if the Bounce back loans is being used to payback the other Government loan scheme.
• Some business sectors are excluded from Bounce back loans, these include banks, insurers, reinsurers, public-sector bodies, further education establishments in they receive grant funding, state-funded primary and secondary schools.
Again, your first port of call for this should be your banking provider for ease of accessibility, however, there are a number of lenders accredited to the scheme.
• Clydesdale Yorkshire Bank Group
• Danske Bank
• Lloyds Bank
• Royal Bank of Scotland
• Ulster Bank
The scheme is currently open until 4th November 2020.
All banks are taking their own approach on this we have seen a number of clients complete forms with their own banks but it remains to be seen what other information will be required.
Cheap Borrowing or an unnecessary debt?
This is some of the cheapest borrowing I have ever seen, so if you have other debt that you want to pay off, maybe credit card debt or other loans, it could be worth getting a loan under this scheme to consolidate.
Crucially though this is only for up to 25% of your turnover. So you may be better of applying for a CBIL if you need more than this.
New Rates-Based Grants Support
Last week a further pot of money was announced to support those businesses who don’t have business premises, or they sub-let from somebody else with rates included, and they perhaps haven’t got the support many of customer-facing businesses have.
Each Local Authority will be designated some money to distribute to applicants as they see fit.
As far as we can tell, there is no set criteria or set amount that you can receive, nor is there any guidance yet on the application process, but if you do fall into this category, and you are struggling for cash, we would recommend a quick call to your Local Authority, as they may be able to provide further information on this.
More details on this can be seen here: