Applications for the second round of the Self-Employment Income Support Scheme (SEISS) close on 19 October 2020.
This grant offers those who are eligible a taxable payment equal to 70 per cent of average monthly profits for three months (capped at £6,570).
You can claim for the SEISS if you are a self-employed individual or a member of a partnership and all of the following apply:
- You are carrying on a trade that has been adversely affected by Coronavirus;
- You traded in the tax year 2018-2019 and submitted a Self-Assessment tax return on or before 23 April 2020 for that year;
- You traded in the tax year 2019-2020;
- You intended to continue to trade in the tax year 2020-2021;
- You have trading profits of less than £50,000 and more than half of your total income comes from self-employment. This can be with reference to at least one of the following conditions:
- Trading profits and total income in 2018-19
- Average trading profits and total income across up to the three years between 2016-17, 2017-18, and 2018-19.
The scheme is not available to people working through their own limited companies.
If you believe you may have previously claimed a grant in error or received an overpayment you must notify HM Revenue & Customs (HMRC) soon, as there are strict time limits to avoid a penalty.
If you received this grant before 22 July 2020, you must tell HMRC on or before 20 October 2020. Any overpayments or grant payments obtained in error on or after this day must be reported within 90 days of it being received.
Although the SEISS was originally intended to end this month, the Government has now extended the scheme and will make two more payments.
One grant will cover the period between 1 November 2020 to 31 January 2021, offering a grant equal to 20 per cent of average monthly profits for three months (capped at £1,875), and another will cover the period 1 February 2021 to 30 April 2021, at a rate yet to be determined.
The scope of the extended scheme will now be much narrower, as will the qualifying criteria, with a new requirement being introduced that you must be continuing to trade.
If you require assistance applying for the SEISS or have questions about the scheme, please contact us.