Second Self Employment Income Support Scheme (SEISS) grants applications now open
18th August 2020
Eligible workers can now apply for the second phase of the Government’s Self Employment Income Support Scheme (SEISS) grants.
Read on to find out more.
Self Employment Income Support Scheme second grant
Under the scheme, self-employed people can claim for taxable grants to cover 70% of their average monthly trading profits for June, July and August – up to a maximum of £6,750.
HMRC will calculate the average monthly trading profits over three years to determine the amount it pays out. Once claimed, payments will be made within six days.
Claimants are permitted to continue working in their existing business, as well as starting new employment or undertaking voluntary work.
You can apply for the grant at HMRC’s website.
What’s the catch?
Not everyone is eligible for the grant and eligibility is primarily based on your tax returns. In order to apply you must:
- have submitted a self-assessment tax return for the tax year 2018/2019 on or before 23rd April 2020 and have been trading during this tax year. The trading profits for this year must have been less than £50,000 and at least equal to your non-trading income. HMRC will look at the 2016/2017, 2017/2018 and 2018/2019 tax years if you are not eligible on the 2018/2019 tax return
- have been trading in the 2019/2020 tax year and intend to trade in 2020/2021
- be able to demonstrate that your trade has been negatively impacted by coronavirus (this includes things like supply chain disruption, employees, loss of trade due to restrictions/closures and personal circumstances such as health or caring responsibilities that have prevented you from working)
You can check your eligibility for the scheme on HMRC’s website.
Additionally, it’s important to remember that while this grant does not have to be repaid, it will still be subject to tax and NICs which will need to be paid.
Talk to the experts
If you have any questions on SEISS, our friendly team are always on hand to offer support. Get in touch.
All information correct at time of going to print/live and on the best knowledge and understanding of the author at the time. This article is for general information only and does not constitute financial advice or recommendations for individual circumstances. No responsibility is taken for any actions taken on the base of the information within this article.
