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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 a 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.

Record Keeping

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.

Be Aware

Fraudsters are targeting those who might be claiming SEISS grants. To guard against fraud any emails and SMS messages from HMRC do not include active links. If you receive an email or SMS purporting to come HMRC which includes an active link, that email or SMS is a scam. If you have any doubts when receiving correspondence form HMRC then please check with us.

Links

The full HMRC guidance  for SEISS can be found here.

Our previous updates can be found on Facebook and LinkedIn or on our website blog

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