In addition to the newly extended Job Retention Scheme for employees, the Self-Employed receive another boost from the UK Government with a second Self Employed Income Support Scheme grant. And unlike the former which ceases on 31st October, the SEISS has, as yet, not been given a withdrawal date.
Here are the main points you need to be aware of for your second claim:-
- Your business must be adversely affected by the pandemic on or after 14th July, although you are not prevented from working in your business.
- HMRC defines adverse as a trade that has either ceased, or has been “temporarily scaled back”. They do give three (possible, but not exclusive) examples:-
- Your supply chain has been interrupted
- You have fewer customers
- Your employees were unable to work
- HMRC would also consider your business adversely affected if you are:-
- Shielding yourself or someone else in your household
- Self-isolating
- On sick leave caused by the virus
- Caring for another because of the virus
- You must continue to keep records reflecting the cause of the adverse effect in your business, along with relevant dates, although there is no minimum period of being adversely affected? (i.e it could be as little as a couple of days to qualify for the entire 3 month grant).
- The new grant level will be calculated at 70% of your annual profit* (as previously calculated*), capped at £2,190 per month for 3 months and continues to form part of your taxable income for 2020-21.
It is fair to conclude that the above definitions are extremely broad, and almost every business would qualify under one of the headings, even if their trade and profits improve over the period! The generosity of this grant continues to be a point of great controversy in many circles…
Examples of adversely affected businesses
Find more information in our Covid-19 Support section.