If you are eligible to apply for the first grant from the government’s Self-Employment Income Support Scheme (SEISS) the deadline to do so is rapidly approaching.
Individuals can continue to apply for the first SEISS grant until July 13. Those that are eligible can claim a taxable sum worth 80 per cent of their average monthly trading profits.
The money is paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
Those eligible have the money paid into their bank account within six working days of completing a claim.
The scheme is being extended – with those eligible able to claim a second and final grant capped at £6,570.
Applications for that second grant will open in August. Individuals will be able to claim a second taxable grant worth 70 per cent of their average monthly trading profits.
Again, this will be paid out in a single instalment covering three months’ worth of profits.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus.
An individual does not need to have claimed the first grant to receive the second grant. For example, they may only have been adversely affected by Covid-19 in this later phase.
As of the end of May, the scheme had received more 2.3 million claims worth £6.8billion.
HMRC has not yet created an online portal to be able to claim for the second grant.
It asking people not to get in contact about the second grant yet – HMRC will update guidance on the government website when ready to take applications.
In a TV interview Jim Harra, chief executive of HMRC told MoneySavingExpert Martin Lewis the second round of the scheme will open in mid-August.
He said: “We expect to open the claims service on August 17. We will write to people and ask them to make their claim when we’re ready to receive it.
“That should make it so there’s enough time for people to make their claim and receive their second grant before the end of August.”
It has created an online tool which will let people check their eligibility for themselves.
To check if you are eligible visit: https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
WNJ can’t process claims on behalf of our clients, they must calculate their claims themselves, but we can provide assistance if needed.
To check if you are eligible you will need your:
• Self Assessment Unique Taxpayer Reference (UTR) number
• National Insurance number
If eligible, you will need to register with HMRC and set up a Government Gateway Account ID and password (you are prompted to do both these after confirmation of eligibility).
Once registered, HMRC will confirm a both a date and time that clients can claim from.
People are eligible if their business has been adversely affected by coronavirus, they traded in 2019-20, intend to continue trading and they:
• Earn at least half of their income through self-employment;
• Have trading profits of no more than £50,000 per year
• Traded in the tax year 2018 to 2019 and submitted their Self Assessment tax return on or before 23 April 2020 for that year.
If you are told you that you’re not eligible to make a claim, you can ask HMRC to review this after you’ve used the online tool. If you want to do this at a later time, you’ll be able to use the online tool more than once.