Newly self-employed to complete pre-verification checks before claiming fourth SEISS grant
Newly self-employed workers claiming the fourth and fifth self-employment income support (SEISS) may need to complete pre-verification checks, it has been revealed.
According to the Institute of Chartered Accountants in England and Wales (ICAEW), HM Revenue & Customs (HMRC) has written to more than 100,000 taxpayers informing them about the changes.
The new rules apply to those who started self-employment in the 2019/20 tax year, following the extension of the scheme.
The guidance, found here, informs taxpayers that HMRC may need more information to confirm their identity and business activity before the fourth and fifth grant can be approved.
HMRC says self-employed workers will receive a Dropbox link where electronic documents can be deposited securely online. Taxpayers will need to provide digital copies of their identification and three months’ worth of bank statements within two days of receiving the link, or the Dropbox link will expire.
If you are not able to provide such information, HMRC warns that it will not be able to assess your eligibility for the fourth SEISS grant and “you won’t be able to claim under the scheme”.
Announced as part of Budget 2021, the fourth instalment will cover up to 80 per cent of average trading profits in a three-month period.
Unlike previous iterations, however, the scheme will now include newly self-employed taxpayers who filed a tax return in 2019/20.
For help and advice with related matters, please get in touch with our expert team today. We can save you a lot of time, worry, and money by handling your self-assessment for you. We will do all the necessary computations, complete your return, and offer advice on how to minimise your tax liability.
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