Countdown to second SEISS grant opening

If you are eligible to apply for the second grant from the government’s Self-Employment Income Support Scheme (SEISS) the starting date to do so is approaching.

The online service is not available yet. If you’re eligible you will be able to make a claim for a second and final grant under the scheme from August 17.

Individuals will be able to claim a taxable grant worth 70 per cent of their average monthly trading profits, capped at £6,570 in total.

As with the initial SEISS scheme, this will be paid out in a single instalment covering three months’ worth of profits.

The eligibility criteria remain the same 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.

HMRC 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.

How the grant works:

If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as a military reservist.

The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

You can claim if you’re a self-employed individual or a member of a partnership and your business has been adversely affected on or after July 14 this year.

Your business could be adversely affected by coronavirus if, for example:

• You’re unable to work because you are shielding or self-isolating
• are on sick leave because of coronavirus
• have caring responsibilities because of coronavirus

You may also be eligible if you’ve had to scale down, temporarily stop trading or incurred additional costs because:

• your supply chain has been interrupted
• you have fewer or no customers or clients
• your staff are unable to come in to work
• one or more of your contracts have been cancelled
• you had to buy protective equipment so you could trade following social distancing rules

You must keep evidence to confirm your business was adversely affected at the time you made your claim.

You cannot claim the grant if you trade through a limited company or a trust.

Grants under the Self-Employment Income Support Scheme are not counted as ‘access to public funds’, and you can claim the grant on all categories of work visa.”20M