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The Self-Employment Income Support Scheme (SEISS) Has Been Extended

SEISS

The Self-Employment Income Support Scheme (SEISS) has been extended, making a second and final  grant available for self-employed individuals to claim in August.

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The First SEISS Grant

The SEISS currently allows self-employed individuals who have been adversely affected by the Coronavirus outbreak to claim a grant based on 80% of their average monthly trading profits, capped at a maximum of £7,500 in total.

Other points to note:

  • HMRC have automatically contacted everyone they believe may be eligible to claim the first grant. If you are eligible and have not yet claimed, you have until 13th July to do so.
  • The grant does not have to be repaid, but it is taxable.
  • The grant is paid in a single instalment
  • You can continue to trade while receiving the SEISS grant

The second SEISS Grant

If you’re eligible and your business is adversely affected by coronavirus on or after 14th July 2020 you will be able to make a claim in August 2020 for the second grant. As with the first grant, HMRC will calculate eligibility and contact those who may be eligible.

Other points to note:

  • The second grant will be lower than the first, based on 70% of average trading profits with a maximum of £6,570 in total.
  • Assuming you qualify, you can claim the second grant whether or not you claimed the first

Eligibility

To be eligible to claim a SIESS grant you need to be a self-employed individual or member of a partnership, and all the following must be true:

  • You traded in the tax year 2018/19
  • You submitted your self-assessment tax return for that year on or before 23/04/20
  • You traded in the tax year 2019/20
  • You intend to continue trading in the tax year 2020/21
  • Average self-employed profits for 2018/19, or for 2016/17 to 2018/19 do not exceed £50,000
  • Your business has been adversely affected by coronavirus

HMRC defines being “adversely affected” as having either temporarily stopped trading or been scaled back, and they give three possible reasons why coronavirus may have caused this:

  • Fewer/no customers or clients
  • Staff were unable to work
  • Interrupted supply chains

Further, HMRC considers that your business will be classed as having been adversely affected if you were:

  • Shielding yourself or someone else in your household
  • Self-isolating in line with government advice
  • On sick leave because of coronavirus
  • Unable to work because of caring responsibilities due to coronavirus

Your accountant is not allowed to make the application for you, however if you are lucky enough to be with Orange Genie Accountancy, we will be able to advise you if you’re likely to be eligible, and how the grant will affect your tax position.

If you have any questions or if we can help in any way please call our expert team on 01296 468 483 or email info@orangegenie.com.

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