Self-employment Income Support Scheme - Second grant available
This note is based on the information available at 1 June following the information published by the Government on 29 May 2020 announcing the extension to the Self-employment Income Support Scheme (“SEISS”)
Second and final grant
- The Chancellor announced that a second and final grant can be claimed under the SEISS by eligible self-employed individuals.
- The grant will be payable in a single instalment, as before, but this time will be capped at £6,570 in total.
- The grant will again cover three months’ profits, but the monthly amount will be based on 70% of the average trading profits of 2016-17, 2017-18, and 2018-19.
- The same conditions that applied to be eligible for the first grant will also apply to this second grant.
- Individuals will again need to confirm that their business has been adversely affected by coronavirus when making the claim.
- HMRC’s guidance gives the following examples of when a business can be affected
- the taxpayer being unable to work because of shielding, self-isolating, being on sick leave or having caring responsibilities because of coronavirus.
- The business has to scale down or temporarily stop trading for example because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work.
- To support this claim we suggest retaining evidence of the factors that caused the adverse impact.
- The Government advise that applications will open in August 2020.
- Further detailed guidance is expected to be published on 12 June.
Please see our previous update which set out the eligibility conditions and how the grant is calculated on the Covid-19 page of our website
https://www.bgm.co.uk/insight/news/support-for-self-employed-individuals-4th-may
First grant
• Applications for the first grant will close on 13 July 2020.
• An individual does not need to have made a claim under the first grant to be eligible for the second grant.
We will continue to monitor Government announcements and provide updates as the situation evolves over email, on our website, LinkedIn and Twitter account.
Please contact your BGM advisor or email communications@bgm.co.uk if you would like any assistance.
