If you are a taxi driver, registered as `self Employed' with HMRC (you are not eligible for the grant if you work through a limited company) and your business is adversely affected by the Covid -19 from 14 July 2020 onwards you should go ahead and apply for the second grant government is offering. You can get this grant even if you are on a work visa.
To be eligible you should have traded in the tax year 2018/19 and must have submitted your tax return for that year on or before 23 April 2020, you must also have continued trading in the tax year 2019/ 2020 and you intend to continue trading in the tax year 2020/2021.
You need to take a quick action as the deadline to apply for the grant is 19 Oct 2020.
What Documents do I need to apply for the loan?
To be eligible for the grant you need to prove that your business was adversely affected by the Covid-19. As a taxi driver you might be eligible for the SEISS second grant because your business has been adversely affected by Covid-19. This may be mainly due to added costs, for example buying a protective shield, hand sanitisers and also due to decrease in the income as the number of customers have decreased even after the restrictions of the lockdown were eased. However, you should have proper records to prove this to HMRC.
You should have your bank statements as a proof that there is a decrease in income or an increase in the costs incurred, if you had applied and were given any other grants or loans because you were struggling in your business you should have a proof for that. For example, bank showing the loan received in the account or a letter confirming that the loan will be given.
If you are applying because you were showing symptoms of Covid and you wanted to self-isolate or because of the high risk and vulnerable situation the taxi drivers were at you decided to self-isolate and therefore the business was affected you should provide the dates you stopped working.
How Can I apply for the Loan?
You can apply for the loan online yourself, tax agents are not allowed to apply on your behalf as it's a busy period and the online service might be slow it`s better to have things ready before you go online to apply:
- Make sure you have your Self- Assessment Tax payer reference (UTR) ready. UTR is the ten digit number which you can find on your previous tax returns or any payment reminders from HMRC.
- You should also have your Government Gateway ID with you
- Your bank details
This grant is to support the self-employed who are struggling financially. This grant doesn't have to be returned. An individual can use this to start a small business.
HMRC will do its working to see if you are eligible and how much needs to be given to you by looking at your trading and no trading profits for the last 3 years. If you think you are given less than you are eligible for you can contact tax agents and they can deal with it. For more information on how much you will get go to HMRC website: https://www.gov.uk/guidance/how-hmrc-works-out-total-income-and-trading-profits-for-the-self-employment-income-support-scheme
If you need any help relating to tax and accounting services such as filling and submitting your self-assessment tax return, registering your new businesses and making annual accounts do not hesitate to call us at 020 8127 0728 or email us at info@taxaccolega.co.uk and we will be happy to help you.