The Chancellor has announced further support for the self-employed, extending the original Self-Employment Income Support Scheme (SEISS). Note that this still does not include companies or directors of companies.
The new grant will again be the equivalent of three months profits, calculated in the same way as the initial grant which opened in May. The basis period for calculations has not changed.
The eligibility criteria for the second grant will mirror the first, so if you were not eligible for the first grant then you will not be eligible for the second. There will be a further declaration in the application process for the second grant to confirm that you have been adversely affected by coronavirus.
While “adversely affected” is not defined, guidance indicates that will include a reduction or temporary halt in business activity due to any of these reasons:
- Business owner is unable to work because they are shielding, self-isolating, on sick leave because of coronavirus or have caring responsibilities because of coronavirus
- Supplies not arriving
- Fewer customers
- Staff unable to work
Applications under the new grant scheme will open in August and the amount will be lower than the initial grant, equivalent to 70% of the taxpayer’s annual average profits capped at £2,190 per month. The maximum grant will therefore be £6,570 for the three month period.
The application process will be the same as the first grant and taxpayers will need to make a claim in the same way, the details will not be automatically rolled-over to the new claim. Like the first claim, the second will also be considered taxable income and must be included on a Self Assessment tax return.
Applications for the first SEISS grant which opened on 13 May will close on 13 July 2020, so if you are eligible and have not already made a claim you should do so by this date.
Full guidance from HM Revenue & Customs is available here.