As previously mentioned, SEISS is being extended. However, we wanted to clarify the details and eligibility criteria.
Second grant
- You will be able to claim a second and final grant in August 2020;
- HMRC will calculate your eligibility the same way as the first grant;
- To claim the second grant your business must have been adversely affected by the virus on or after 14 July 2020;
- This grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment capped at £6,570 in total;
- You can claim for the second grant even if you did not make a claim for the first grant;
- The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance;
- If you receive the grant you can continue to work;
The online service for the second and final grant is not available yet.
Who can claim?
You can claim if you are a self-employed individual or a member of a partnership and all of the following apply:
- you traded in the tax year 2018/19 and submitted your SA tax return on or before 23 April 2020 for that year;
- you traded in the tax year 2019/20;
- you intend to continue to trade in the tax year 2020/21;
- you carry out a trade which has been adversely affected by coronavirus
To work out your eligibility HMRC will first look at your 2018/19 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 are not eligible based on the 2018/19, HMRC will then look at the tax years 2016/17, 2017/18, and 2018/19.
You must make the claim yourself. Your tax agent must not claim on your behalf.
Check if you are eligible to claim
You can your eligibility for the first grant online. You will need your Unique Taxpayer Reference (UTR) and your National Insurance number. Check now
First grant
If you want to claim the first grant you must make your claim on or before 13 July 2020.
To claim you’ll need your:
· Government Gateway user ID and password
· UK bank details.
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
The first grant will be worth 80% of your average monthly trading profits, paid out in a single instalment and capped at £7,500 in total.
Make your claim online for the first grant. Self