HMRC has confirmed the same eligibility criteria will be used to establish self-employed individuals’ entitlement to a further grant; the grant will be 70% rather than 80% of average earnings for three months and the maximum amount will be capped at £6,570, down from the £7,500 for the first grant. Applications will open in August and HMRC expects to publish further guidance on 12 June.
As with the first grant, HMRC will contact you if you are eligible. You can make a claim for the second grant, even if you did not make a claim for the first grant.
More than 2.3 million individuals have already claimed an SEISS grant, with an average award of £2,900. The first claim period nominally covered March to May and the SEISS portal will close for claims for this period on 13 July.
Those claiming both the first and the second grant have to confirm that they meet the eligibility criteria, in particular that their business has been adversely affected by coronavirus. HMRC’s guidance indicates that this includes being unable to work because the taxpayer is shielding, self-isolating or is on sick leave or has care responsibilities because of coronavirus. It also includes scaling down or temporarily stopping trading because the supply chain has been interrupted, the business has fewer or no customers or staff are unable to work.
If you have any questions related to COVID-19 or self assessment tax returns, please get in touch to talk to the team.
Thanks for stopping by,
The Business Hut Team