Self-employed can access a second grant under SEISS
On Friday 29 May the Chancellor announced that self-employed workers across the UK will be able to access a second grant from the government to cover lost income while the country is in lockdown.
The second round of grants paid out by the Self-Employment Income Support Scheme (SEISS) will be worth 70% of a self-employed person’s average monthly trading profits to cover three months’ worth of income, capped at £6,570.
Applications for the second grant will open from 17 August and you will be able claim from 18 August until 19 October. An individual does not need to have claimed the first grant to receive the second (for example if they have only been adversely affected by COVID-19 more recently).
You will be able to claim on the gov.uk website when the scheme re-opens.
How it works
The eligibility criteria is the same as the first grant. Your self-employed profits in 2018/19 must not exceed £50,000 and must be more than 50% of your total income. If that test is not met, then the same £50,000 and 50% tests are applied to average profits and total income over the three years (or shorter period) to 5 April 2019.
There are a number of anomalies. For example, if the trade commenced 6 October 2017, the profits for 2017/18 and 2018/19 are divided by 2 to establish an annual profit figure rather than divided by 18 months.
Like the Coronavirus Job Retention Scheme (CJRS) furlough payments, the amounts received are included in your trading profits and thus subject to income tax and national insurance.
Final round of grants
This is the “second and final time grants will be offered” the chancellor said.
First announced on 26 March, the SEISS has been used by 2.6 million people so far. It has paid out £6.8bn in claims to self-employed who have been affected by the impact of Coronavirus on the economy.
The first grant paid 80% of average monthly trading profits, capped at £7,500 for the the initial 3 month period. Individuals can continue to apply for the first grant until 13 July.
No announcement or grant was made regarding Company Directors and those who became self-employed after April 2019.
How we can help
Unfortunately, unlike the CJRS furlough scheme, claims could not be made by agents on behalf of clients. However, we can of course check that you have received the correct amount and request a review if the amount is incorrect.