Thank you for contacting me about support for the self-employed.
To qualify for SEISS one must either be currently trading but impacted by reduced demand due to coronavirus, or temporarily unable trade due to coronavirus. I am delighted that at the recent Budget, the scheme was not only extended until September, but was also expanded to include those who became self-employed in 2019-20 meaning 600,000 more people are now able to access support during these challenging times. An applicant has to declare that they intend to continue to trade and that they reasonably believe there will be a significant reduction in their trading profits.
'Reasonable belief' is defined In the SEISS guidance: it involves expecting that the individual concerned will suffer a significant reduction in trading profits due to reduced business activity, capacity, demand or inability to trade due to coronavirus. It is also clearly stated that they must keep evidence that shows how their business has been impacted by coronavirus resulting in less business activity than otherwise expected.
I am reassured to see that HMRC has been in contact with tens of thousands of individuals and is requesting documentation to ensure that they are claiming SEISS correctly.
I welcomed the amendments to the Finance Act which ensured that HMRC has appropriate and proportionate compliance and enforcement powers in relation to the CJRS and SEISS. The amendment will ensure that taxpayer money is going only to those who are eligible; the new clause gives HMRC powers to recover overpayments and to impose penalties where there is deliberate non-compliance.
Payment Date
I appreciate your strength of feeling on this issue. I completely agree that this virus has affected everyone, including the self-employed, and ensuring people have the right support when they need it is essential.
I am aware that the last date for making a claim for the third SEISS grant was the 29th January 2021, and that the online claims service for the fourth grant was available from late April 2021 until 31st May 2021. This allowed HMRC to process 2019 to 2020 Self-Assessment tax returns, which extended this vital support lifeline to 600,000 more people. I am pleased that claims can be made for the fifth grant if your business profit will be impacted by coronavirus between 1 May 2021 and 30 September 2021.
Backdating SEISS for March and April 2020: I am not currently aware of plans to backdate SEISS to March and April 2020 but I will continue to engage with ministerial colleagues to ensure that they are aware of questions about this matter.
A range of support measures were announced in the March Budget that provided further help to many self-employed people and businesses, including the new UK-wide Recovery Loan Scheme and the £5 billion Restart Grants. Moreover, many self-employed people have benefited from business rates relief, the extension of the VAT cut to 5 per cent for certain sectors, and the extension of loss carry back rules to support the cashflow of businesses. I am pleased that up to 11 million people can continue to benefit from enhanced Time to Pay, which provides breathing space and helps ease the financial burdens individuals and companies face as we navigate the months ahead.
I want to assure you that protecting the jobs and livelihoods of the self-employed across the UK is a Government priority, and I am glad that since March 2020, the SEISS has helped around 2.9 million people. I know that it remains a challenging time for the self-employed and I will raise your concerns with my ministerial colleagues.
Thank you again for taking the time to contact me.
Craig Whittaker MP
August 2021