Self-Employment Income Support Scheme (SEISS) Sept 2020

Self-Employment Income Support Scheme (SEISS) Sept 2020

The government has announced the Second stage of the Self-Employed Income Support Scheme since 17 August 2020.

Key points:

  1. In the first round, the Government grant was 80% of the average of three months of trading profits, up to a maximum of £7,500 (average £2,500 per month).
  2. The second grant is up to 70% of 3 months average up to a maximum of £6,570 (average £2,190 per month).  This grant opened on 17 August 2020 and will close on 19 October 2020.
  3. On 24 September, the third round extends the scheme up to 20% of 3 months average up to a maximum of £1,875 (average £625 per month).  The date of the opening and the closing date is not yet announced.
  4. The fourth grant will be announced later.
  5. Average trading profits will be calculated as per submitted self-assessment for 2016/17, 2017/18 and 2018/19 with some exceptions for particular circumstances.
  6. The second, third and fourth grant can be claimed even if the first grant was not claimed.
  7. Grants are paid within 6 working days of submission of a claim.
  8. The claim must be submitted by the taxpayer and by anyone else (including Accountant).
  9. HMRC will do all necessary calculations, all you need to do is submit the claim.
  10. Every grant will be treated as income and is taxable.
  11. Conditions:
    11.1 Submitted 2018-19 Self-assessment tax return by 23 April 2020
    11.2 Continue to trade in 2019-20
    11.3 Intend to carry on trading in 2020-21
    11.4 Trade is badly affected by Covid-19
  12. Here is the link to apply: https://www.gov.uk/guidance/claim-a-grant-through-the-self-employment-income-support-scheme
    This portal will close on 19 October 2020.
  13. The Process of making a claim:
    13.1 read and accept the eligibility criteria;
    13.2 complete a declaration, including to confirm that the business has been adversely affected by coronavirus;
    13.3 supply the bank account details into which they would like the grant to be paid.
  14. Keep the following evidence:
    14.1 business accounts showing a reduction in turnover;
    14.2 submission reference number;
    14.3 confirmation of any coronavirus-related business loans;
    14.4 dates the business had to close due to lockdown restrictions; or
    14.5 dates the taxpayer or their staff were unable to work due to coronavirus symptoms, shielding or caring responsibilities due to school closures.

 

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