Self-employment Income Support Scheme (SEISS) – Information on the second claim
Applications for the first SEISS grant closed this week on Monday 13 July 2020. Applications for the second grant will open from 17 August 2020 (on a staged basis) and close on 19 October 2020.
Eligibility for the second grant
HMRC’s guidance states that to qualify for the second grant the business must be adversely affected on or after 14 July 2020.
HMRC has published further guidance including some examples of what constitutes ‘adversely affected’ to assist with determining whether a claim can be made.
The updated guidance details that you could be adversely affected if, for example
If you have 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
If you as an owner of the business cannot work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
The HMRC guidance including examples of when you would be adversely affected can be found here.
Like the first claim, CFW as agents are not able to make this claim on your behalf. We will gladly help you to review if your business has been adversely affected, however it is your responsibility to determine if you have valid claim. HMRC will ask you to confirm you are eligible when making the claim.
Amount of claim
The second grant will be calculated in the same way as the first but be worth 70% of your average monthly trading profits capped at £6,570.
Both of the SEISS grants are taxable when received in 2020/21.
Individuals can receive each of the grants in full grant under the SEISS while continuing to work as long as their businesses have been adversely affected at the date of claim.
You must keep a copy of all records in line with normal self-employment record keeping requirements, including the:
- amount claimed
- grant claim reference
You should also keep any evidence that your business has been adversely affected by coronavirus at the time you made your claim, such as:
- business accounts showing a reduction in turnover
- confirmation of any coronavirus-related business loans you have received
- dates your business had to close due to lockdown restrictions
- dates you or your staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities
Paying the claim back
If you think you have been overpaid or are not eligible for a grant that has been received, you can Tell HMRC and pay back the grant.
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The full HMRC guidance for SEISS can be found here.