Published On: Fri, Aug 21st, 2020

SEISS warning: HMRC data shows ‘devastating’ gaps in support – are you eligible? | Personal Finance | Finance


SEISS statistics released today from HMRC highlighted that millions of people have been considered for a grant but not all applicants were eligible. HMRC detailed that around five million individuals reported self-employment income for the tax year 2018 to 2019, and had their data assessed for potential SEISS eligibility but only 3.4 million of these individuals were identified as eligible.

“A second grant opened earlier this week, still without even a nod to these forgotten groups, who now face yet more months with no support.

“With the threat of a second wave and further lockdowns looming, the government must urgently consider ways to support these desperate forgotten freelancers.”

Second grants became available from August 17 and eligible claimants have until October 19 to put through a claim.

Claimants who had already received a grant through SEISS will have likely been contacted by the government to inform them that a second grant could be requested.

These second grants will be the final ones that the government will pay out and they will be less generous than what was initially offered.

The final grant will be worth 70 percent of the claimants average monthly trading profits, capped at £6,570 in total.

Receivers of a grant will be able to keep working and/or start a new trade or take on other employment (including voluntary work) then they receive the support.

The grant will not need to be repaid but it will be subject to income tax and self-employed National Insurance.

Self-employed workers will usually pay two classes of National Insurance which will be dependent on how much money is made.

Class two will be paid if the person’s profits are £6,475 or more a year and class four will be paid if the profits are £9,501 or higher.

There are two National Insurance rates in place for these classes, as detailed below:

  • Class two – £3.05 a week
  • Class four – nine percent on profits between £9,501 and £50,000 and two percent on profits over £50,000



Source link

About the Author

-