The Self-Employment Income Support Scheme (SEISS) has been extended. Eligible self-employed taxpayers will be able to claim a second, and final, grant under the scheme in August.
The eligibility criteria for the second grant are the same as the first. To qualify, the 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;
- intend to continue to trade in 2020/21; and
- they have lost profits due to the Coronavirus.
The grant is limited to traders whose trading profits are £50,000 or less, either for 2018/19 or on average for the three years 2016/17 to 2018/19 inclusive. Profits from self-employment must also comprise at least 50% of the individual’s income to qualify for the grant.
The taxpayer will need to confirm that they were ‘adversely affected’ by COVID-19 on or after 14 July 2020 when making their claim for the second grant. HMRC have published examples on the Gov.uk website of circumstances in which a business will be deemed to be adversely affected by the pandemic. They include:
- an inability to work because the taxpayer is shielding, self-isolating, sick with Coronavirus or has caring responsibilities as a result of the virus;
- a scaling down of the business due to interruption of the supply chain;
- a loss of trade because staff are unable to work; or
- a loss of trade because of a reduction in customers or clients.
Amount of the second grant
The second grant is based on 70% of average monthly profits for three months, based on the profits for 2016/17, 2017/18 and 2018/19. The calculation is adjusted where the taxpayer was not trading for all of these years. The second grant is capped at £6,570.
Making the claim
The claim cannot be made until August. As with the first claim, it must be made online. While agents cannot make claims on behalf of clients, we can help you determine whether you are eligible and what you are entitled to receive.