Claiming the second grant from the Self-Employment Income Support Scheme (SEISS) can be made from 17 August 2020 onwards.
Who can claim the SEISS?
As with the first grant, HMRC will directly write to business owners that they believe are eligible to make a claim.
To qualify, an individual must:
- have submitted their self-assessment tax return for 2018/19 by 23 April 2020;
- traded in 2019/20;
- be continuing to trade when they claim the grant, or would be except for the Coronavirus pandemic; and
- intend to continue to trade in 2020/21.
The grant can only be claimed by traders who have profits of £50,000 or less, either in 2018/19 or on average for the three years of 2016/17 until 2018/19 inclusive. Profits from self-employment most also attribute for at least 50% of the individuals income.
What does adversely affected mean?
The grant is only available to claimants that have had their business adversely affected on or after 14 July 2020.
Adversely affected means that the claimant has been unable to work because they are shielding, self isolating, or have actually been on sick leave because of coronavirus, or they may have had caring duties due to the virus.
This grant can also be claimed if the claimant has had to stop trading during the coronavirus pandemic, or even scaled down their operations or have incurred additional costs due to:
- Supply chain interruptions
- Fewer customers or clients
- Staff unable to work
- Contracts cancelled due to the virus
- PPE costs
The claimants of this grant must be able to show how their business was adversely affected by coronavirus.
How much do I get from the grant?
That’s based on average trading profits for the three consecutive tax years – 2016/17, 2017/18 and 2018/19. The second grant is set at 70% of the three months’ average profits, up to a maximum of £6,570.
How do I make the claim?
The claims must be made by the claimant themselves, and it can be done online. They can’t be triggered by tax agents or advisers, as this will trigger a fraud alert which will delay payment of the grant.
In order to claim, the claimant will need their Government Gateway User ID and password, and the details of the UK bank account which the payment will be made into.
When making the claim, the claimant needs to confirm the business was adversely affected by Coronavirus on or after 14 July 2020.
The deadline for claims is 19 October 2020.
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