Second SEISS (Self Employment Income Support Scheme) Grant

The Self Employment Income Support Scheme (SEISS) has been extended for a second (and final) period.

The scheme has been extended until 19 October 2020, and the second and final grant can be claimed from 17 August 2020 through the online service. The main change is that only 70% will be paid on this grant (compared to 80% on the previous scheme).

The eligibility remains the same as the first grant, providing your business has been adversely affected on or after 14 July 2020.

Adversely Affected

Your business could be adversely affected by coronavirus if, for example:

  • you’re unable to work because you:
    • are shielding
    • are self-isolating
    • are on sick leave because of coronavirus
    • have caring responsibilities because of coronavirus
  • you’ve had to scale down, temporarily stop trading or incurred additional costs because:
    • your supply chain has been interrupted
    • you have fewer or no customers or clients
    • your staff are unable to come in to work
    • one or more of your contracts have been cancelled
    • you had to buy protective equipment so you could trade following social distancing rules

If you have incurred additional expenses as a result (such as charges for rent or zoom/online services, new iPad etc to support virtual groups), these can be claimed as an expense as usual on your business accounts.

Key summary

  • The second grant covers the period from 14 July 2020 to 19 October 2020
  • This grant is for 70% of your average monthly trading profits, capped at £6,570
  • Your business needs to have been adversely affected by Covid-19 on or after 14 July 2020
  • Applications are made in the same way as before, through HMRC’s online service
  • The grant will be subject to Tax and National Insurance – you’ll declare any funds received on your 2020/21 tax return to HMRC

You can claim for the second and final grant even if you did not make a claim for the first grant.

Examples

Example 1

Matt became a consultant in 2014. 
He meets all of the eligibility criteria and has the below profits:

– 2016/17: £3,000
– 2017/18: £8,000
– 2018/19: £15,000

HMRC would add up the total profits (£26,000) and then divide by the number of years available (3) to reach an average profit of £8,666.66. 

This would then be divided by 12 to reach a monthly amount £722.22. 

70% of this is £505.55. This would be the grant payable per month, therefore a total grant payable of £1,516.65.

Example 2

Claire became a consultant in 2018. 
She meets all of the eligibility criteria but only has the 2018/19 tax return submitted as she began consultancy during this year. Her profit is below

– 2018/19: £6,000

HMRC would use the number of years available to calculate an average annual profit. In this case, it’s £6,000.

This would then be divided by 12 to reach a monthly amount £500. 

70% of this is £350. This would be the grant payable per month, therefore a total grant payable of £1,050.