SEISS Extension: Key things you need to know if you’re self-employed

SEISS extension

As of the end of May, 2.3 million claims had been made to the Self-Employment Income Support Scheme (SEISS) –  the financial relief scheme introduced to support sole traders during the coronavirus pandemic.

On the 17th August, a second grant will be opening. We take a look at what it means and how you can claim.

What is the second SEISS grant?

The initial SEISS grant ended on 13 July 2020, but with COVID-19 still having a devasting impact on sole traders, the government agreed to introduce a second grant. The aims of this grant is not only to support those who claimed the first grant and continue to be affected, but also those who may not have been affected by the initial lockdown, but are now suffering noticeable business losses. 

What are the terms of the grant?

This second grant can only be claimed if your business was adversely affected on or after 14 July 2020. It is worth 70% of your average monthly trading profits, and will be paid out in a single instalment covering 3 months’ worth of profits, capped at £6,570 in total.

As with the first grant, it will not need to be repaid but will be subject to Income Tax and self-employed National Insurance.

Who can apply for SEISS?

SEISS is available to all self-employed individuals that have been adversely affected by COVID-19 as long as you:

  • earn the majority of your income through self-employment
  • have an income of £50,000 or less
  • have filed a tax return for the 2018/19 tax year
  • have traded during the 2019/20 tax year
  • intend to continue trading in 2020/21

Are there any additional criteria I need to meet?

In order to apply for SEISS, your business needs to have been affected by COVID-19. This means:

  • Your trade or industry had to close or was restricted in such a way that your trade closed or was otherwise adversely affected
  • You cannot organise your work or workplace to allow staff to work safely
  • Your staff or customers are no longer able to purchase from you due to restrictions
  • Restrictions have affected your customers or staff
  • One or more of your contracts have been cancelled as a result of COVID-19
  • You have been ill, self-isolating or shielding
  • You have had to care for others and therefore been unable to run your business.

How can I claim?

From the 17th August, you will be able to claim for this second grant. As before, HMRC will contact you if you’re eligible,  even if you didn’t make a claim for the first grant.

You can check if you are eligible and how HMRC will work out how much you will receive, but HMRC will be contacting you directly to invite you to apply online. 

Can I continue to work if I claim SEISS?

Yes, if you do receive the grant, you can continue to work or take on other employment.

Need more help?

We are happy to advise you on how to fill out any SEISS forms, but as before HMRC are saying you must make the claim yourself.

If you do have any questions about SEISS or how any recent COVID-19 changes impact on your business, please get in touch.

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