SEISS  - July Update

If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020.

The Scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits paid out in a single instalment covering 3 months’ worth of profits and capped at £6,570 in total.  As with the first grant HMRC will contact you if you’re eligible.

HMRC will work out your eligibility for the second grant in the same way as the first grant.

You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.

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 National Insurance.

Who can claim?

As with the first grant, 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 14 July 2020.

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

You’re unable to work because you:

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

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 make your claim.

All of the following must also apply:

• you traded in the tax year 2018 to 2019 and submitted your Self-Assessment Tax Return on or before 23 April 2020 for that year
• you traded in the tax year 2019 to 2020
• you intend to continue to trade in the tax year 2020 to 2021
• you carry on a trade which has been adversely affected by coronavirus

To work out your eligibility HMRC will first look at your 2018 to 2019 Self-Assessment Tax Return. Your trading profits must be no more than £50,000 and at least equal to your non-trading income.

If you’re not eligible based on the 2018 to 2019 Self-Assessment Tax Return, HMRC will then look at the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019.

You must make the claim yourself. We must not make the claim on your behalf as this will trigger a fraud alert and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.

If you’re eligible

If you want to claim the second and final grant you must make your claim from 17 August 2020. No claims will be accepted after 19 October 2020.

To claim you’ll need your:

Government Gateway user ID and password - if you do not have a user ID, you can create one when you make your claim

UK bank details (only provide bank account details where a BACS payment can be accepted) including:

• bank account number
• sort code
• name on the account
• your address linked to your bank account

You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.

If you’re not eligible

HMRC use the information sent to them on your Self-Assessment Tax Returns to work out your eligibility. If you think the information is incorrect contact HMRC.

How much you’ll get

You’ll get a taxable grant based on your average trading profit over the 3 tax years:

• 2016 to 2017
• 2017 to 2018
• 2018 to 2019

HMRC will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then will divide by 3. The second and final grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service will tell you how HMRC have worked your grant out. The grant amount will be paid directly into your bank account, in one instalment.

Other help you can get

• Universal Credit
• Deferral of Self-Assessment Income Tax and VAT payments
• Coronavirus Business Interruption Loan Scheme
• Bounce Back Loan

Further information

The content of this information has been collated from the Government update issued on 16 July – you can read the full statement here:-

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

For further guidance on COVID-19: support for businesses click here https://www.gov.uk/coronavirus/business-support