by David Watkinson www.warringtonaccountants.co.uk
It will soon be possible for qualifying self-employed people to apply for a second Self Employed Income Support Scheme (SEISS) grant.
This will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits. It is capped at a total of £6,570. If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist. It does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
Who’s entitled to the scheme?
You can claim if you’re a self-employed individual or a member of a partnership and all of the following apply:
– you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
– you traded in the tax year 2019 to 2020
– you intend to continue to trade in the tax year 2020 to 2021
– you carry on a trade which has been adversely affected by coronavirus after July 14.
What does “Adversely Affected” mean?
Your business could be adversely affected by coronavirus if you’re unable to work because you:
a. are shielding, self-isolating, on sick leave because of coronavirus or have caring responsibilities because of coronavirus
b. You’ve had to scale down or temporarily stop trading because:
– your supply chain has been interrupted
– you have fewer or no customers or clients
– your staff are unable to come in to work
When can I apply for a second grant?
It will be possible to apply for the second SEISS grant from Monday August 17th with a deadline of Monday October 19th. The deadline for the first grant was in July.
How to apply
You can make your claim at https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference
Before you apply you will need the following:
– Self Assessment Unique Taxpayer Reference (UTR)
– National Insurance number
– Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
– UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
– bank account number
– sort code
– name on the account
– your address linked to your bank account