SEISS warning: 2nd grant applications must be done by next month’s deadline – full details

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SELF-EMPLOYED workers have been able to receive support from the government if they’ve struggled financially due to coronavirus. The Self-Employment Income Support Scheme (SEISS) has provided millions of self-employed workers with grants to fund them through this period but an important deadline is approaching.

Self-employed people were provided with support from the government earlier on in the year. SEISS allows eligible claimants to receive a taxable grant from the government, with applications for an initial grant closing on July 13.

A second and final grant can now be claimed but a deadline for this is quickly approaching.

Claims for a second grant must be made before October 19, 2020.

This second grant will be less generous than the first.

It will cover 70 percent of the claimants’ average monthly trading profits, paid out in a single instalment covering three months’ worth of business.

This will be capped at £6,570 in total.

People will be able to make a claim if they’re a self-employed individual or a member of a partnership and the business in question has been adversely affected by coronavirus.

Additionally, the following must also apply:

  • the claimant traded in the tax year 2018 to 2019 and submitted their Self-Assessment tax return on or before April 23, 2020, for that year
  • they traded in the tax year 2019 to 2020
  • they intend to continue to trade in the tax year 2020 to 2021

It will not be possible to claim the grant if an applicant trades through a limited company or trust.

The government will provide claimants with a date to claim from and this must be followed.

If claimants have not been given a date from HMRC, they can use a dedicated online service to check.

Claims themselves can also be made online.

  

The government provide examples of what could count as a business being “adversely affected” by coronavirus and there is broad scope in place.

Self-employed individuals could have been affected if they’ve had to stop working due to the fact that they are shielding, self-isolating, are on sick leave or have caring responsibilities because of coronavirus.

From a business perspective, a claimant will also qualify if they’ve had to scale down, temporarily stop trading or have incurred additional costs because:

  • their supply chain has been interrupted
  • they have fewer or no customers or clients
  • their staff are unable to come into work
  • one or more of their contracts have been cancelled
  • they had to buy protective equipment so they could trade following social distancing rules

It should be remembered that the government will require claimants to keep any evidence that their business has been adversely affected at the ready.

This is because a claimant will need to present this evidence when they make their claim.

Evidence of this nature can include business accounts and dates of when staff were unable to work etc.

So long as the grant is paid, the claimant will not need to worry about repaying what is given to them but they will be subjected to income tax and self-employed National Insurance down the line.

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