This week, HMRC are writing to self-employed people who may be eligible to claim the second round of Self Employment Income Support. The scheme will open for claims on 17 August and, once again, HMRC will give you a date to make a claim so that the system is not overloaded by everyone claiming at once. You can claim any time between your allocated date and 19 October 2020.
The eligibility criteria are exactly the same as for the first grant; if you were eligible for the first SEISS grant you will be eligible for the second grant, so long as your business has been adversely affected since 14 July 2020. This typically means that your business has experienced lower income and/or higher costs because of the Covid-19 crisis since 14 July. There is no minimum by which your business income, costs or activity must have changed, but you will be asked to keep appropriate records as evidence of how your business has been adversely affected.
You do not need to have claimed the first grant to claim the second grant; for example, your business may have been adversely affected more recently.
The second taxable grant is worth 70% of average monthly trading profits, a reduction from the 80% available under the first grant. This will be paid out in a single instalment and will be based on three months’ worth of trading profits and capped at a maximum of £6,570.
Once you have submitted your claim, HMRC have said that you will receive payment within 6 working days.
Whilst we are not able to make claims on our clients’ behalf, the feedback we received from clients who made claims under the first round of grants was generally positive in terms of the process and speed of HMRC’s response. If you are a first time claimant and wish to check your eligibility, please see our article dated 12 May.