On 29 May, HM Revenue and Customs (HMRC) extended the Self Employed Income Support Scheme (SEISS) for a further three months. HMRC have now issued further guidance on the scheme which provides financial support to self-employed people whose businesses have been affected by the COVID-19 situation.
Up until 13 July, SEISS allows a self-employed individual (including those trading as a partnership) to claim a taxable grant worth 80% of average monthly trading profits, paid out in a single installment covering three months’ worth of profits and capped at £7,500.
A second and final grant can be claimed if your business has been adversely affected on or after 14 July 2020. You can make this second claim in August (HMRC have not confirmed the exact date yet). It is possible to claim for the second grant even if you did not claim for the first grant. The claim is worth 70% of average monthly trading profits and will be paid out in a single installment capped at £6,570. While eligibility for the second grant is the same as the first grant, it is a separate claim and you will have to confirm that your business has been adversely affected by COVID-19 on or after 14 July 2020.
HMRC have provided the following guidance of what they consider to be factors that may have adversely affected your business by COVID-19:
- You are self isolating
- You are shielding
- You are on sick leave due to COVID-19
- You have caring responsibilities because of COVID-19
- You have had to scale down or temporarily stop trading because your supply chain has been interrupted
- You have fewer or no customers/clients
- Your staff are unable to come to work
To summarise, if your business is adversely affected in the period up to 13 July 2020, you can claim the first grant. If your business has been adversely affected in the period from 14 July 2020, you can claim the second grant. HMRC have issued an online tool to make a claim which uses the information reported under your self-assessment tax return. Click here to view our step by step guide to checking your eligibility and when making a claim.