Taxpayers with payments on account due 31 July 2020 have already been allowed to delay payment until January.
The Chancellor has announced that there will now be a concession for payments due in January 2021, allowing later payment.
HMRC anyway runs a helpline to agree ‘time to pay’ arrangements. It may be that the new concession will mean payment can be delayed without the need for any formal agreement, possibly without interest being charged. I shall update on this as further details are announced.
The SEISS is being extended to two further payments.
The most recent (second) payment can be claimed until 19 October.
Following that, two further payments will be available to taxpayers who qualified for the previous payments, and based on the same past profits as before. The third grant will be 20% of those profits, to a maximum of £1,875, and will be available late autumn. The fourth grant planned for 2021 has not been outlined yet, but as support is generally being tapered off, I would expect this to be not more than the third amount.
Claims will be made via the same Gateway portal, and as before there will be questions to answer and a declaration to make, which must be true at the date the grant is claimed. All SEISS amounts received must be declared in that year’s tax return, and are subject to income tax and national insurance.
This opens today and runs until 19 October.
Details of who is eligible to claim are similar to before, but this time taxpayers are asked to consider whether their business has been adversely affected by coronavirus on or after 14 July 2020 (up to the date of claiming). The amount of the taxable grant is lower than before, 70% of relevant income, to a maximum of £6,570. Taxpayers who claimed a first amount and qualify to claim again can expect to receive 87.6% of the first amount they received.
Unfortunately there has been no move to extend eligibility to self-employed taxpayers who fall outside the original criteria, for example because they are newly trading, do agency work, or had profits averaging more than £50,000 per year.
Claims can be made by logging in here:
and taxpayers will need their
- 10-digit tax reference (UTR)
- National Insurance number
- Gateway login details
- Bank details
Claims are staggered, so the first login may bring up a message showing the earliest claim date as a day within the next week.
The Chancellor has announced a second and final taxable grant for some self-employed individuals.
This will be lower than the first by about 12.5%, and the maximum will be £6,570.
I assume that the qualifying conditions will be the same as before. This would mean that only those entitled to claim first time around will qualify again, and then only if their business is still adversely impacted during the period June to August 2020.