The second support grant available for self-employed workers

18th Jun 2020
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The Chancellor has announced that HMRC will extend the Self-Employed Income Support Scheme (SEISS) for a further three months, but the new grant, ending in October, will be the final SEISS grant available to taxpayers.

The Self-Employed Income Support Scheme 2.0

HMRC has announced that applications for the second grant will open in August 2020. Although an exact timing has not been announced, further details are set to be released on 12 June.

The second grant will pay out 70% of taxpayers average earnings for three months. This is capped at £2,190 per month, meaning it could be worth a total of £6,570. Like the first grant, it’s also calculated by taking a basic average of monthly taxable profits.

Once HMRC has calculated what your grant total is, the funds will be transferred into your account as a lump sum.

Eligibility

The eligibility criteria for the second SEISS grant will be the same as for the first grant, in that claims are only open to businesses that have been “adversely affected” by coronavirus.

HMRC advise that a business could be adversely affected if it meets any of the following criteria:

  • Supply chain has been interrupted
  • Fewer or no customers or clients
  • Staff are unable to come into work

This means businesses which were not initially impacted by coronavirus  but are now adversely affected have the option to apply for the second grant.

How your clients can access it

Unlike some of the other grants, applications can be accessed through the HMRC’s online portal. The SEISS grants are not automatically provided to you meaning any existing SEISS claim will not be rolled-over.

In addition to your National Insurance number, Unique Taxpayer Reference and Government Gateway details, you’ll need your bank sort code and account number when making a claim, so HMRC can transfer the funds to your bank account if your claim is successful – and you’ll learn the result immediately.

The funds will be paid into your account within six working days of making a successful claim.

Make sure you keep a record of the grants (no matter whether you claim one or both), in line with your self-employment record keeping, as you’ll need to report on them in your Self Assessment tax return.

You also should only claim if you’ve genuinely lost out due to coronavirus disruption.