Up to 100,000 people who began their self-employment during the 2019-2020 tax year (April 6th 2019 - April 5th 2020) are being sent letters requesting additional information.
HMRC require these 'recent' self-employed to provide information proving they have been involved in trade and to confirm additional identity requirements. These people were previously completely ineligible for a SEISS grant payment, but as long as they successfully submitted their 2019/20 tax return by the end of March 2nd, they can claim the 4th grant.
The additional requirements come as concerns are raised regarding the risk of fraudulent claims. The fourth SEISS grant as well as the fifth SEISS grant can be based on just the income details for the 2019/20 tax year. With each of these final grants capped to £7,500, potentially up to £15,000 could be paid out per false claimant.
HMRC is sending letters between March 10th and April 15th, with additional information requested including:
- Digital copies of proof of identity.
- Three months' worth of bank statements proving the business has legitimately been trading.
HMRC will contact people to get an email address to which they will send a secure 'dropbox' file sharing link. It is to this link where applicants will have two days to upload the requested supporting documentation.