COVID-19 - SECOND SELF-EMPLOYMENT INCOME SUPPORT (SEISS) CLAIM


HMRC stated on 14 August 2020 that the second Self Employment Income Support Scheme (SEISS) grant is opening for those eligible to make a claim.  HMRC have told us that they are writing to self-employed people who may be eligible, and that the scheme will be open for claims on 17 August, and those eligible have been given a date to make a claim.  HMRC state that those eligible can claim any time between their allocated date and 19 October 2020.

The eligibility criteria for the second claim is exactly the same as the first - therefore self-employed people who were eligible for the first SEISS grant will be eligible for the second grant, so long as their business has been adversely affected since 14 July 2020. This typically means that your business has experienced lower income and/or higher costs because of coronavirus (COVID-19) since 14 July.  They state that there is no minimum threshold over which a business's income, costs or activity need to have changed by, but you will be asked to keep appropriate records as evidence of how your business has been adversely affected.

The second taxable grant is worth 70% of average monthly trading profits, 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 capped at a maximum of £6,570.

We are not allowed to make a claim on your behalf.

You will need to apply online.  HMRC state that it will take less than five minutes to claim online using your Government Gateway account, and once you have completed a claim, you will receive payment within six working days.

The online service is not yet available.  HMRC will contact you, and if you are eligible to make a claim, you will be able to do so from 17 August.

As previously, you must keep a record of the amount claimed and the claim reference.  You will need to report both claims on your self-assessment tax return for the tax year 2020 to 2021.

The grant does not need to be repaid, but will be subject to Income Tax and Self-Employed National Insurance.

For more information visit:https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme