as doing so could trigger HMRC’s anti-fraud procedures. This would inevitably slow down the claim process and make it more difficult for HMRC to pay the grant out.
Individuals who have not been contacted by HMRC after 17 May and believe that they are eligible, are advised to use the eligibility checker after that point, and if applicable, make a claim.
Updated guidance relating to SEISS shows that there is no longer a requirement for those who are eligible to confirm that they are below the €800,000 aid cap. The State Aid Temporary Framework has been amended so that it now allows for “Aid in the wage of subsidies” (section 3.10). This differs from the previous “Aid in form of direct grants, repayable advances or tax advantages” (section 3.1) on which the €800,000 cap applies. SEISS was recently approved under section 3.10 so the cap does not apply. The SEISS is just one of a number of measures announced to support the self-employed through the outbreak of coronavirus, which includes Bounce Back loans, the deferral of income tax and increased levels of Universal Credit. Chancellor of the Exchequer, Rishi Sunak, said:
“We’re working ahead of time to deliver support to the self-employed and from today, applications open for the millions of people eligible for the scheme.
With payments arriving before the end of this month, self-employed across the UK will have money in their pockets to help them through these challenging times.”
Individuals are eligible for the SEISS if their business has been negatively impacted by the outbreak of COVID-19, if they traded in tax year 2019-20 and intend on continuing to trade. They must earn at least 50% of their income through self-employment, have trading profits which do not exceed £50,000 per year and have traded in tax year 2018-19, having submitted their associated Self-Assessment tax return on or before 23 April 2020. HMRC will calculate the amount to be paid on an average of tax returns for 2016-17, 2017-18 and 2018-19.
For further support, individuals are being advised to use HMRC’s webchat service or to call the COVID-19 helpline on 0800 024 1222.
CIPP comment
The CIPP is delighted that the SEISS has been established and impressed by how quickly payments will be made. We would love to hear any of your feedback and learn about your experience of using the SEISS, so please don’t hesitate to contact the Policy and Research team at Policy@cipp.org.uk with any of your thoughts and opinions.
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The Pensions Regulator urges trustees to prioritise pension switches between Defined Contribution schemes 14 May 2020
The Pensions Regulator (TPR) has advised trustees to prioritise pension switches to ensure that they are completed with sufficient time so that savers aren’t penalised during the COVID-19 pandemic.
In updated guidance, TPR reiterated to trustees how switches between Defined Contribution (DC) schemes are a “core financial transaction” and frequently used by savers to access their pension funds so they must remain a priority despite the outbreak of coronavirus. Previously published guidance detailed how trustees of Defined Benefit (DB) schemes may opt to delay new member requests for transfer quotations by up to a maximum of three months, but TPR has confirmed that this isn’t the case for switches between DC schemes as the valuation of benefits is far less complicated.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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