The government has announced that a second payment will be available to those who are Self Employed.
Those who are eligible for the second, and final grant, can claim a second payment from 14th July onwards.
The Self Employed Income Support Scheme
The SEISS scheme had been rolled out to support those who were self-employed, and affected by coronavirus, earlier this year.
From 4th May HMRC had been contacting people that they believed were eligible for the scheme, and offered them a taxable grant worth 80% of the individuals average trading profits (up to a max of £7,500, across a 3 year calculation).
The scheme was a big success at the time, but the deadline for closing is fast approaching.
The deadline for claiming the first payment under the scheme is 13th July 2020, and the grant is paid in one lump sum.
A Second Grant Made Available
Due to the imminent closure of the scheme, the government have announced an extension.
The extension of the scheme will bring support to those whose trade continues to be adversely affected by coronavirus on or after July 14th.
The second grant is also taxable, and worth a little less than the first: 70% of your average monthly trading profits (up to a max of £6,570, across a 3 year calculation).
It’s expected to help those who are self employed in the case of a second spike. It has also been put into place, in the case of local lockdowns.
The criteria for eligibility is the same as the previous grant, and it is not necessary for an individual to have applied for the first grant, in order to get this one.
Are You Eligible For The Grant?
You can claim for this grant if your average trading profit over the past 3 tax years (up to 18/19) was less than £50,000. The majority of your income must have come from self-employment and you:
- carry on a trade which has been adversely affected by coronavirus on or after July 14th 2020.
- traded in the 18/19 tax year and submitted your Self-Assessment tax return on or before 23rd April 2020.
- traded in the 19/20 tax year.
- intend to continue to trade in the 20/21 tax year.
What To Do Next?
If you haven’t applied for the first grant, you can do so before 13th July 2020 through HMRC’s online system here.
If you want to apply for the second grant, you’ll have to do that on or after 14th July. The deadline for the second grant will be 17th August 2020.
Once you’ve submitted your claim you’ll be told immediately if your grant is approved. The payment will go into your account within 6 working days.
You must keep a copy of your reports and submit them on your next Self Assessment form as the grant is taxable.
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