Don’t miss the deadline for the first Self-Employment Income Support Scheme grant

If you have trading income and are planning on applying for a first grant under the Self-Employment Income Support Scheme be aware the Monday, 13th July deadline is fast approaching. 

You have until that date to make a may claim for a Self-Employment Income Support Scheme (SEISS)  grant if you are self-employed or a partner in a trading partnership. The taxable grant is worth 80% of your average monthly trading profits, paid out in a single lump sum covering three months’ worth of profits and is capped at £7,500.

You will be eligible to make a claim for the first SEISS grant if:

• you traded in 2018/19
• you submitted your 2018/19 tax return on or before 23rd April
• you have traded in 2019/20
• you intend to continue to trade in 2020/21
• you are trading when you apply, or would be had it not been for Covid-19
• your trade must have been adversely affected by Covid-19

In addition, your trading profits must be no more than £50,000 and more than half of your total income for either:

• the tax year 2018 to 2019
• the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019

HM Revenue and Customs (HMRC) should already have contacted you if you are eligible to make a claim and this must be made using a dedicated HMRC portal.

Second SEISS grant

On 29th May, the Chancellor, Rishi Sunak, announced an extension to the SEISS scheme and a second grant will be available from August.

As yet, full details are unknown about how the extended scheme will work or when the online portal will be open for making claims. However, the amount of the grant will be calculated at 70% of annual average profits, capped at £6,570 across the three months the grant is intended to cover.

The conditions that need to be satisfied to qualify for a second SEISS grant remain the same as those for the first.

Claiming a second SEISS grant

When you make a claim for the second grant, it is believed you will need to again confirm that your business has been adversely affected by COVID-19, on or after 14th July 2020.

HMRC advises that your business could be adversely affected by coronavirus if, for example:

You are unable to work because you:

• are shielding
• are self-isolating
• are on sick leave because of coronavirus
• have caring responsibilities because of coronavirus

You have had to scale down or temporarily stop trading because:

• your supply chain has been interrupted
• you have fewer or no customers or clients
• your staff are unable to come in to work

HMRC also provides examples of when a business is adversely affected by COVID-19 for the first and second grants here.

For a free initial consultation, call our friendly and experienced team today on 01423 871 870 or drop us a line using our online enquiry form.

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For our latest COVID-19 news and guidance for your business, visit our dedicated Coronavirus Hub.
We will be updating it regularly as we continue to monitor and digest all the latest information

Last updated: 1st July 2020