The Self Employment Income Support Scheme (SEISS) has been extended, enabling individuals to make a second and final grant claim in August 2020. Tax Director Angela Keery looks at the latest announcement.
This extension is welcome, and gives some additional security to those adversely affected. Eligibility criteria is the same for both grants, with individuals having to confirm that their business has been adversely affected by COVID19.
First Grant – As previously advised, the scheme allows those in Partnerships as well as Sole Traders that have been adversely affected by COVID-19 to claim a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering three months, and capped at £7,500 altogether. Individuals can apply for this first grant from now until 13th July 2020. Those that are eligible will have the money paid into their bank account within six working days of completing a claim.
Second Grant – Eligible individuals (Sole Traders/ Partners) can apply for a second taxable grant worth 70% of their average monthly trading profits, capped at £6,750 for the three months, this will also be paid out on a single instalment.
You do not need to have claimed the first grant to be eligible for the second (if for example your business has only been adversely affected by COVID19 in this later phase). Applications for the second grant will open in August, and we are expecting further guidance to be issued on Friday 12th June.
A claim can only be made by you personally, it can not be made by your agent or tax adviser therefore we strongly recommend that you follow the steps to work out whether you are likely to be entitled to a Grant and how you can claim it.
You can find more about the government grant for the self-employed and the eligibility criteria on our website by clicking here and on HMRC’s website here.
To discuss your own circumstances contact Angela Keery by email angelakeery@bakertillymm.co.uk or Tel: 028 9032 3466.