Henry and Banwell Chartered Accountants > News > COVID-19 > Self-employment support income scheme – 2nd Payment

Self-employment support income scheme – 2nd Payment

  • Posted by: Michael Winkelmann

HMRC’s claims portal for the second grant opens on 17 August 2020.

The website address to make the claim is:

https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme

 At a glance

Support for the self-employed during the Corona Virus crisis:

  • Two separate taxable grants are claimable:
    • First grant for the period ending 13 July 2020.
    • Second grant for the period from 14 July 2020.
  • The grant payable is the lower of:
    • £6,570 (if claiming for the second grant) and
    • 70% of your average monthly profits over the three years 2016/17, 2017/18 and 2018/19* for the second three months.
  • The grant was initially capped for three months and has subsequently been extended.
  • The grant is available to self-employed individuals:
    • With trading profits up to £50,000 per year whose majority of income comes from being self-employed.
    • Who have been adversely affected by the Coronavirus crisis.
  • If you receive the grant you can continue to work or take on other employment including voluntary work.
  • You do not have to have claimed the first grant to be able to claim the second.

Claims for the second round of grants at the lower rate may be made from 17 August 2020 with a deadline of 19 October 2020.  See above link regarding a claim under the SEISS .

Note that: Company directors are employees for PAYE purposes and not self-employed, see COVID-19: Company directors

Overview

Eligibility

You can claim the grants only if your business is ‘adversely’ affected by the Coronavirus.’ To claim the second grant your business must have been adversely affected on or after 14 July 2020.

Your business may be adversely affected if any of the following apply:

Restrictions on trading:

  • Government orders have meant that your trade or industry had to close or to be restricted in such a way that your trade closed or is otherwise adversely affected.
  • You cannot organise your work or workplace to allow your staff to work safely.
  • You cannot serve customers due to social distancing.
  • Restrictions have affected your customers or staff.
  • Your supply chain is interrupted due to shortages of product, PPE etc.
  • One or more of your contracts have been cancelled.
  • You have fewer or no customers or clients.

Restrictions on you personally:

  • You have been ill or self-isolating or shielding.
  • You have had to care for others and this disrupted your work.

HMRC provides examples of situations were a business affected here.

Qualifying conditions

The same conditions apply to both rounds of grant funding. These conditions relate to eligibility for the grants and not to the amounts you will receive if you do qualify, details of which are set out at How will the grant be calculated? below.

You are self-employed and you:

  • Have submitted your Income Tax Self Assessment tax return for the tax year 2018-19 on or by 23 April 2020.
  • Have traded in the tax year 2019-20.
  • Are trading when you apply or would be except for COVID-19.
  • Intend to continue to trade in the tax year 2020-21.
  • Have lost trading/partnership trading profits due to COVID-19. You should keep records to support this.
  • Average self-employed trading profits between £0 – £50,000.

Additionally, more than half of your total income comes from self-employment.

One of the following conditions A to C must be met to be eligible for the scheme.:

  1. Your trading profits/partnership trading profits are between £0 – £50,000 for 2018-19 and those trading profits are more than half of your total taxable income for that year, or
  2. Your average trading profits/partnership trading profits for the three years 2016-17, 2017-18, and 2018-19 are between £0 – £50,000 and your average trading profits for those years are more than half of your total taxable average income for those same years, or
  3. If you did not trade in 2016-17, your average trading profits/partnership trading profits for the two years 2017-18, and 2018-19 are between £0 – £50,000 and your average trading profits for those years are more than half of your total taxable average income for those same years.