The second and final Self-Employment Income Support Scheme (SEISS) grant is now open for applications.
If you were eligible for the first grant and are able to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020, you will be able to make a claim for the second grant.
Key facts on the second SEISS grant
- Applications close on 19 October 2020;
- A taxable grant based on your average trading profit over the 3 tax years – 2016/17, 2017/18 and 2018/19;
- The grant is worth up to 70% of trading profits, capped at £2,190 a month;
- Paid out in a single instalment covering 3 months’ worth of profits;
- Capped at £6,570 in total; and
- The grant does not need to be repaid but it is subject to Income Tax and Self-Employed National Insurance.
Am I eligible to receive the grant?
- Self-employed individuals or members of a partnership can make a claim if their business has been adversely affected by coronavirus on or after 14 July 2020;
- You do not need to have claimed the first grant to receive the second grant;
- If you have claimed the first grant, you can claim the second if you are still eligible; and
- Click here to check how different circumstances (for example you are a member of a partnership or have had a new child) can affect your eligibility for the scheme.
The following must also apply
- You traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year;
- You traded in the tax year 2019 to 2020; and
- You intend to continue to trade in the tax year 2020 to 2021.
What does “adversely affected” actually mean?
HMRC recognises the following as being adversely affected:
Unable to work because an individual is:
- On sick leave because of coronavirus; or
- Has caring responsibilities because of coronavirus.
OR your business has had to scale down, has temporarily stopped trading or incurred additional costs because:
- The supply chain has been interrupted;
- There are fewer or no customers / clients;
- Staff are unable to come into work;
- One or more contracts have been cancelled; or
- You have had to purchase protective equipment to enable trading following social distancing rules.
Please see the carousel below for some different scenarios to show how a business could be adversely affected.
It is important to retain evidence to confirm your business was adversely affected at the time the claim was made. This could include:
- Business accounts that show a reduction in turnover;
- Details of any coronavirus-related business loans;
- Dates your business was closed due to lockdown restrictions;
- Dates employees were unable to work due to coronavirus symptoms; or
- Shielding or caring responsibilities due to school closures.
HMRC will take appropriate action to recover payments found to be dishonest or inaccurate. Guidance states “If you know you have been overpaid or are not eligible for the grant and do not tell us, you may have to pay a penalty.”
How do I apply?
- HMRC will contact you with a date to claim from if you are eligible;
- Claims can now be made through the online government portal; and
- If you do not receive a date from HMRC and think you may be eligible, you can use the government online service to check.
To make your claim you will need your
- Government Gateway ID and password. If you do not have a user ID, follow this link to sign in or create your Government Gateway account.
- UK bank details (only provide bank details where a Bacs payment can be accepted); and
- Confirmation that your business has been adversely affected by coronavirus on or after 14 July 2020.
How M+A Partners can help you
As your tax agent, M+A Partners cannot make this claim for you as we would usually do but we can support you with your queries on your eligibility for the grant and how to make your claim. This is because claims for this grant must be made by the self-employed taxpayer.
If you need help with creating your Government Gateway account then get in touch with your usual contact at M+A Partners so we can help you through this process.