04/09/2021 | Press release | Distributed by Public on 04/09/2021 07:10
In its 2021 Budget, the government announced not only the amount of the fourth grant for the Self Employed Income Support Scheme (SEISS), but also that a fifth and final grant would be made available for the period from May to September 2021.
HMRC is introducing new measures to determine eligibility for those claiming an SEISS grant if they haven't already claimed.
In summary, you need to accept a phone call from HMRC in which they'll ask you for proof that you're carrying on a self-employed trade. This presents risks, as we discuss below.
Here's what's covered:
How are the fourth and fifth SEISS grants different from previous grants?
What's the process for claiming the fourth and fifth SEISS grants?
How will HMRC phone me about the SEISS grant?
How do I know if a call from HMRC about the SEISS is genuine?
How are the fourth and fifth SEISS grants different from previous grants?
Our separate blogs about the 2021 Coronavirus recovery plan from the government, and the Budget 2021, give details about the SEISS along with all other measures for business announced by the government recently.
But, in summary, the eligibility has been expanded with the fourth and fifth grants, and some new checks imposed.
Crucially for those newer to self-employment, it's no longer the case that only those who were eligible for the original three grants can apply.
You're eligible for the fourth and fifth grants if the following is true in addition to the existing SEISS conditions (which are detailed in our original blog about SEISS):
However, HMRC is aware that people are claiming the SEISS grants when they shouldn't - either fraudulently, or in ignorance of the rules and limitations.
In a recent update, it said it's 'tackling serious fraud and criminal attacks' and that it will 'will use [its] power to assess overpayments and issue penalties to support these priorities and we will not seek out innocent errors and small mistakes for compliance action'.
To determine eligibility for the new grants, HMRC is contacting potential claimants individually requesting the above examples of trade.
Initially, this communication will be by letter, email or text, and then via a phone call.
What's the process for claiming the fourth and fifth SEISS grants?
if you haven't claimed before or are claiming again after skipping a previous grant because your situation has changed, the steps will be as follows:
How will HMRC phone me about the SEISS grant?
HMRC has confirmed to Sage that it will use the number it has on record for you.
Therefore, you may wish to log in to your Self Assessment, personal tax account, or Government Gateway account to ensure this number is up to date.
Alternatively, you can phone 0800 024 1222 to let HMRC know the number to use.
If your accountant or tax agent handles Self Assessment for you, HMRC may contact them and request your number so they can speak to you directly. The accountant or tax agent is not able to act on your behalf to determine eligibility.
HMRC has also confirmed to Sage that it will try three times to call you. If you don't answer, it will write to you a second time and ask if you want to proceed with the SEISS eligibility checks.
It adds that claimants will have until the end of the application window for the fourth grant to provide the details discussed above.
So, even if you miss the calls, you should still be able to establish your eligibility.
How do I know if a call from HMRC about the SEISS is genuine?
Put simply, it's difficult if not impossible to do so.
The call from HMRC has several details in common with the social engineering techniques used by scam callers:
Often a recommended practice for calls of this nature is to take the operative's name and office location, then terminate the call.
You should then look online or in official documentation for a contact number you can use to call them back, ensuring you only use a phone number listed on the official gov.uk website.
And, if possible, call them back using a different phone, or only after you have also received a genuine call to the phone that HMRC called.
But even this is not 100% safe.
If a landline is used, scammers have been known to keep the line open when you hang up. They then fake the dialling tone and call process, before resuming the scam. However, this is impossible with mobile phone calls.
You also do not know when the call from HMRC will arrive, so effectively will have to answer all calls from withheld numbers for the foreseeable future until you're sure your eligibility has been confirmed.
Sage has requested guidance from HMRC about authenticity of this SEISS confirmation call. We'll update this blog with more information when it's available.
Final thoughts
It's an understatement to say that we live in unusual times, and contacting people in this way is an unusual measure for HMRC to take.
However, being aware of the above and anticipating the call will help ease the process for those who are self-employed, and the call itself is likely to be quick and simple to complete.
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