From 17 August, the Self-Employment Income Support Scheme (SEISS) will open for claims for a second and final grant. Eligible self-employed individuals will be able to claim at any time from 17 August until the scheme closes on 19 October. You will not be able to access the service online or over the phone before this date.
Are you eligible?
The eligibility criteria for the second grant is exactly the same as the first – so self-employed people who were eligible for the first SEISS grant will be eligible for the second grant, as long as their business has been adversely affected by the COVID-19 pandemic since 14 July 2020. Given that many businesses have gradually re-opened in recent months, there is likely to be some uncertainty around this point for some businesses. Please click here to view HMRC’s examples which should hopefully provide some clarity.
‘Adversely affected’ typically means that your business has experienced lower income and or higher costs. There is no minimum threshold over which a business’ income, costs or activity need to have changed by, but you must keep records as evidence to demonstrate how your business has been adversely affected.
If HMRC has identified your business as being eligible, you may have been allocated a date from which you can make your claim.
Self-employed individuals should be aware that you do not need to have claimed for the first grant to claim for the second. You can read our previous blog on the full scheme for all the details.
How much are you entitled to?
The second grant is worth 70% of average monthly trading profits, which is a reduction from the 80% available under the first grant.
This will be paid out in a single instalment and will be based on three months’ worth of trading profits, and as with the first grant, this will have a cap – the maximum you will be able to claim is £6,570.
Payment is within 6 working days of making the claim. It is important to note that this grant is taxable.
Self-employed parents whose income may have been affected if they took time out to have children will also now be able to claim if they meet the eligibility criteria.
How to claim
Claiming online is the quickest and easiest way to get your grant. Visit HMRC’s Youtube channel for videos / webinars that outline the process and offer guidance on submitting your claim.
Support with your claim
Unfortunately PM+M are not able to make this claim on your behalf. We will gladly help you to review whether your business has been adversely affected, however it is your responsibility to determine if you have a valid claim. HMRC will ask you to confirm you are eligible when making the claim.
Please be mindful there are fraudsters impersonating HMRC and you may receive a scam email, text message or phone call relating to SEISS grants – please remain vigilant.
For more information on the SEISS or any coronavirus business related issue, please don’t hesitate to contact your usual PM+M contact.
This information is correct as of 14 August 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.