Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, for what reason he has not amended the Self Employment Income Support Scheme or the Coronavirus Job Retention Scheme to introduce temporary support for the self-employed who are employed by a series of short-term PAYE contracts and have not been registered for support through the Coronavirus Job Retention Scheme by previous employers.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) is available to individuals who are self-employed and who report their trading income through Income Tax Self-Assessment.
To be eligible for the Coronavirus Job Retention Scheme (CJRS), furloughed employees must have been on their employers’ PAYE payroll on or before 19 March 2020 and HMRC must have received an RTI submission notifying payment in respect of that employee on or before the 19 March 2020. It is not possible to amend this deadline owing to the practical implications of monitoring such an extension, and the risk of fraud that has existed since the scheme became public.
Those who do not qualify for SEISS or CJRS may have to access a range of other support, including income tax deferrals, access to a range of grants and loans, and three-month mortgage holidays. The Government has also relaxed the earnings rules for self-employed claimants under Universal Credit.
Asked by: Sam Tarry (Labour - Ilford South)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether self-assessment tax return forms that were amended between the period 26 March 2020 to 20 April 2020 will be accepted in consideration for the Self-Employed Income Support Scheme (SEISS); and whether discretion will be used to ensure that people who made amendments to their self-assessment forms due to genuine error will receive the appropriate support from SEISS.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) is designed to be delivered quickly and so is based on information HMRC already hold. This also provides some protection against fraud and abuse.
The SEISS is governed by a Direction issued by the Treasury. That Direction clearly sets out the parameters of the scheme, including the eligibility and payment calculation rules. The 2018-19 return must have been filed by 23 April 2020, and no amendments made after 6pm on 26 March will be taken into account. The SEISS makes no provision to accept later returns or amendments, for example on reasonable excuse or error grounds. If claimants feel HMRC have got their eligibility decision wrong they may ask for a review, following the process set out on GOV.UK.
Asked by: Margaret Hodge (Labour - Barking)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps have been taken to limit the use of the Self-Employment Income Support Scheme by foreign nationals who meet the criteria for that scheme but have since returned to their home country.
Answered by Jesse Norman
To be eligible for the Self-Employment Income Support Scheme (SEISS) a person must have traded and be subject to UK tax in 2018/19, 2019/20 and intend to continue to do so in 2020/21. As part of the application process, therefore, a person must confirm that they do intend to continue to trade.
The Government expects self-employed people to do the right thing and not to make a claim unless they are eligible. HMRC will use their usual risk-based approach to compliance, and they will take action in cases of suspected fraud or organised criminal attack.
Asked by: Margaret Ferrier (Independent - Rutherglen and Hamilton West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 May 2020 to Question 45620 on the Self-Employed Income Support Scheme, if he will make it his policy to enable accountants to submit applications to the Self-Employed Income Support Scheme on behalf of their self-employed clients.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) was designed in order to make it deliverable quickly and to minimise the risk of fraud. Expanding the scope to include provision for accountants and other agents to make applications on behalf of their clients would have taken significantly longer to deliver, at a time when speed is a priority.
Self-employed people who are eligible for the SEISS were able to make claims from 13 May 2020, and by midnight 24 May 2020 about 2.3 million people had successfully claimed the SEISS. The claims process for the SEISS is easy and straightforward, with HMRC doing all of the calculations.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the financial effect on self-employed carers of including carer's allowance as part of the average income for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) has been designed to use information HMRC already held, in order to make it deliverable as quickly as possible and to minimise the risk of fraud. Eligibility for the SEISS and the value of the grant for eligible individuals is based on income tax self-assessment returns from 2016-17 to 2018-19.
If an individual is in receipt of Carer’s Allowance and has other trading income, their trading profits must exceed the amount of other income, including taxable benefits such as Carer’s Allowance, otherwise they will not meet the eligibility criteria for the SEISS.
Individuals who are not eligible for a grant through the SEISS may benefit from other Government support such as the relaxation of the Universal Credit minimum income floor.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take steps to provide support to self-employed carers that are not eligible for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) has been designed to use information HMRC already held, in order to make it deliverable as quickly as possible and to minimise the risk of fraud. Eligibility for the SEISS and the value of the grant for eligible individuals is based on income tax self-assessment returns from 2016-17 to 2018-19.
If an individual is in receipt of Carer’s Allowance and has other trading income, their trading profits must exceed the amount of other income, including taxable benefits such as Carer’s Allowance, otherwise they will not meet the eligibility criteria for the SEISS.
Individuals who are not eligible for a grant through the SEISS may benefit from other Government support such as the relaxation of the Universal Credit minimum income floor.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has plans to change the qualifying criteria for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
The new Self-Employment Income Support Scheme (SEISS) will help those adversely affected by COVID-19. It means the UK will have one of the most generous self-employed COVID-19 support schemes in the world. HMRC designed the SEISS using information they already held, in order to deliver it quickly and minimise the risk of fraud. Expanding the scope would have required HMRC to collect and verify new information. This would have taken longer to deliver and put at risk the other schemes which the Government is committed to delivering as quickly as possible. Some 95% of people who receive the majority of their income from self-employment could benefit from this scheme. The scheme is targeted at those most in need, and who are most reliant on their self-employment income.
Those not eligible for the SEISS may still benefit from other support. Individuals may have access to a range of grants and loans depending on their circumstances, and the SEISS supplements the significant support already announced for UK businesses, including the Coronavirus Business Interruption Loan Scheme, the Bounce Back Loans Scheme, and the deferral of tax payments. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
Asked by: Luke Evans (Conservative - Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that multiple businesses residing in multi occupancy business premises are able to directly access funds from the Small Business Grants scheme during the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Small Business Grants Fund and the Retail, Hospitality and Leisure Grants Fund have been designed to support the smallest businesses, and smaller businesses in the some of the sectors which have been hit hardest by measures taken to prevent the spread of Covid-19. The two schemes have been tied to the business rates system and rating assessments, which together provide a framework for Local Authorities to make payments as quickly as possible. Businesses in the business rates system are also likely to face particularly high fixed costs, such as fixed rents.
In some cases, businesses operating in multi-occupancy spaces will have their own rating assessments and may therefore be eligible for the grants schemes. In these cases, Local Authorities are urging landlords and management agents to support them in ensuring that the grants reach the correct ratepayers.
Businesses operating in multi-occupancy spaces which do not have their own ratings assessment are not eligible for the grants schemes. Extending eligibility to these businesses would not be practicable as it would require Local Authorities to create an entirely new system and to put in place appropriate anti-fraud checks. This would significantly increase Local Authorities’ workloads at a time when they are already working under pressure to support struggling businesses as quickly as possible.
Small businesses which are not eligible for the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund should still be able to benefit from other measures in the Government’s unprecedented package of support for business, including:
Asked by: Luke Evans (Conservative - Bosworth)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that local radio stations residing in multi occupancy business premises are able to access funds from the Small Business Grant scheme during the outbreak so they can continue broadcasting to their local communities.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Small Business Grants Fund and the Retail, Hospitality and Leisure Grants Fund have been designed to support the smallest businesses, and smaller businesses in the some of the sectors which have been hit hardest by measures taken to prevent the spread of Covid-19. The two schemes have been tied to the business rates system and rating assessments, which together provide a framework for Local Authorities to make payments as quickly as possible. Businesses in the business rates system are also likely to face particularly high fixed costs, such as fixed rents.
In some cases, businesses operating in multi-occupancy spaces will have their own rating assessments and may therefore be eligible for the grants schemes. In these cases, Local Authorities are urging landlords and management agents to support them in ensuring that the grants reach the correct ratepayers.
Businesses operating in multi-occupancy spaces which do not have their own ratings assessment are not eligible for the grants schemes. Extending eligibility to these businesses would not be practicable as it would require Local Authorities to create an entirely new system and to put in place appropriate anti-fraud checks. This would significantly increase Local Authorities’ workloads at a time when they are already working under pressure to support struggling businesses as quickly as possible.
Small businesses which are not eligible for the Small Business Grant Fund and the Retail, Hospitality and Leisure Grant Fund should still be able to benefit from other measures in the Government’s unprecedented package of support for business, including:
An option to defer VAT payments by up to twelve months;
The Coronavirus Business Interruption Loan Scheme, now extended to cover all businesses including those which would be able to access commercial credit;
The Coronavirus Job Retention Scheme, to support businesses with their wage bills;
The Self-Employment Income Support Scheme, to provide support to the self-employed.
Asked by: Selaine Saxby (Conservative - North Devon)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking to help people that are employed on regular seasonal contracts in the (a) tourism industry and (b) Royal National Lifeboat Institution during the covid-19 outbreak.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Chancellor has set out unprecedented support for workers - including seasonal workers across the tourism industry - to protect them against the current economic emergency. This includes the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme.
After consultation with businesses, we have changed the cut-off date for employees to be employed and paid from 28 February to 19 March (the day before the Job Retention Scheme was announced). This means that over 200,000 more people will benefit.
This change expands the scheme to cover more workers, whilst keeping the fraud risks under control.