As things slowly start to return to a new ‘normal’, we continue to be committed to communicating information as it emerges from government.
Given the opening of the claims process for the 2nd Self-Employment Income Support Scheme grant we wanted to ensure that everyone was aware and could start making claims, where eligible.
Self-Employment Income Support Scheme (SEISS)
Applications for the 2nd and final grant under the SEISS opened yesterday (17 August 2020).
The claim for this grant must be made on or before 19 October 2020.
The eligibility criteria and the methodology for calculating the available grant are the same as for the 1st grant.
By way of a broad overview:
- Qualifying self-employed individuals can claim the 2nd grant if their business has been adversely affected by COVID-19 on or after 14 July 2020.
- The 2nd grant will be 70% of the individual’s average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total. The 1st grant was worth 80% of the individual’s average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
- You can claim for the second grant even if you did not make a claim for the first grant.
- The guidance makes it clear that the 2nd grant is the final grant that will be made under the scheme.
- Remember, the grants are taxable, being subject to income tax and NIC. There is a concern that some individual’s may not be aware, or have forgotten this.
The HMRC guidance is useful as to eligibility, definition of ‘adversely affected’, calculation of the grant, and how to make your claim can be found here.
As with the 1st grant, unfortunately we are not able to make claims on behalf of our clients (given the way the HMRC system is set up), but please let us know if you encounter any issues with the process and we’d be very happy to help.
2020/21 Tax rates, bands and allowances
We have now published out 2020/21 tax rate cards. These are a really great, easy reference for all of the need-to-know tax rates, bands and allowances for the current tax year.
These can be found here.
If we can help and advise you in any way, please get in touch with your usual RRL contact, we continue to largely work remotely. We will respond to emails as usual. We are conducting meetings virtually (using Microsoft Teams) albeit face-to-face meetings can be arranged by pre-appointment conditional upon our meeting policies being agreed and adhered to.
We will provide further updates, as and when further announcements are made and detail/guidance released.