SEISS is to be extended and a second and final grant will be available from 17th August 2020. The deadline (at the moment) for claiming is 19th October 2020.

This taxable grant will be worth 70% (down from 80% from the first grant) of average trading profits from 16/17, 17/18 and 18/19, again paid out in a single instalment and covering three months’ worth of profits. The second grant will be capped at £6,570 (down from £7,500 from the first grant). The second grant is for the period 14th July 2020 onwards (the first grant ran up to 13th July 2020).

The eligibility criteria for the second grant will be the same as for the first grant and for ease of reference are as follows:

Additionally, more than half of total income comes from self-employment.

One of the following conditions A to C must be met to be eligible for the scheme:

  1. Trading/partnership profits are between £0 – £50,000 for 18/19 and those trading profits are more than half of total taxable income for that year; or
  2. Average trading/partnership profits for the three years 16/17, 17/18 and 18/19 are between £0 – £50,000 and average trading profits for those years are more than half of total taxable average income for those same years; or
  3. If you didn’t trade in 2016-17, average profits/partnership profits for the two years 17/18 and 18/19 are between £0 – £50,000 and average trading profits for those years are more than half of total taxable average income for those same years.

From July 2020 a proposed modified extra condition for parents, including adoptive parents, who took time out of trading to care for their children within the first 12 months of the birth of the child or within 12 months of an adoption placement:

Claimants do not need to have claimed the first grant to claim the second grant, but will have to confirm that their business has been adversely affected on or after 14th July 2020.

To claim you will need your:

How to Claim:

The online service is not available yet. If eligible uyou will be able to make a claim for a second and final grant from 17th August 2020. HMRC will contact businesses they believe are eligible. As with the first grant it would be prudent to undertake your own due diligence, but checking if you are adversely affected will be key, as the upturn in the economy (albeit small) could disqualify some of the first claimers from the second round.

After the Claim:

HMRC will check the claim and pay the grant into the bank account in the next 6 working days. HMRC will also send an email when the payment is on its way.

HMRC should not be contacted unless it has been more than 10 working days since the claim was made and the payment hasn’t been received in that time.

If your business recovers after the claim, eligibility will not be affected. Evidence must be kept to confirm the business was adversely affected at the time the claim was made.

If you think the Grant is too low:

HMRC will use the information on the tax returns to work out the grant amount.

If you think the grant amount is too low, you should check how much you’ll get by visiting the following link:

If after visiting this site you still think the grant amount is too low, HMRC can be asked to review the grant amount.

Record Keeping and Reporting:

You must keep a copy of all records in line with normal self-employment record keeping requirements, including the:

You should also keep any evidence that their business has been adversely affected by coronavirus at the time the claim is made, such as:

Members of Partnerships:

Tax and Benefit Implications:

The grants are subject to tax and NIC as self-employed income:

VAT Implications:

HMRC have not provided any guidance as to whether the grants will be subject to VAT or count towards turnover for VAT registration limits. Normal principles are expected to apply (but by no means certain) to mean:

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