Claims for the second round of the Self Employed Income Support Scheme (SEISS) can be made from 17 August to 19 October. The online claims service is not available yet: HMRC are expected to release further information shortly.
The second SEISS payment:
- Amounts to 70% (previously 80% for the first grant) of average monthly trading profits
- Covers 3 months’ worth of profits
- Is capped at £6,570 (previously £7,500 for the first grant).
Eligibility tests and the definition of average monthly trading profits remain the same as for the first payment. However, in order to qualify for the second grant the business must be ‘adversely affected by COVID-19’ on or after 14 July 2020. Some examples of ‘adversely affected by COVID-19’ can be found here.
There is no requirement to have made a claim for the first grant in order to qualify for the second.
Both SEISS grants must be reported in full on the 2020/21 Self Assessment Tax Return, regardless of the basis period of the accounts, method of accounting, or date of receipt of the money.
If any individual claims an amount they are not entitled to, they must notify HMRC and repay it by the latest of:
- 90 days after the legislation was given Royal Assent, so by 20 October 2020, or
- 90 days after the date the grant was received.
Failure to do so can result in recovery of the grant, plus interest and penalties. If an individual knew they were not entitled to the SEISS payment when they received the money, they could face a ‘deliberate and concealed’ penalty of up to 100%. Further details of how to repay HMRC can be found here.
It has been made quite clear that this will be the final extension of the scheme, and therefore no further payments are expected.
If you have any queries regarding the SEISS scheme then please speak to your usual Whiting and Partners contact.