If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19) you can use this scheme if you’re eligible to claim the grant.

Who can claim?

As with the first SEISS grant, the basic eligibility criteria remains unchanged. As a reminder, all of the following must 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

·         your business has been adversely affected due to coronavirus

What does adversely affected mean?

it is a requirement that a claim may only be made if the business has been “adversely affected by the health, social and economic emergency in the United Kingdom resulting from coronavirus and coronavirus disease”.

To be ‘affected’ means to be changed by something, in this case by the coronavirus pandemic. The direction tells us this can be through any of the three concurrent emergencies: health, social or economic. In terms of economic impact, the test, as HMRC set it out, is that either business income is lower or costs are higher.

What period does the claim relate to?

The first and second SEISS grants apply to different periods for which the business must be adversely affected. The direction for the second SEISS grant clearly states that the business must be adversely affected on or after 14 July 2020. As applications for the second SEISS grant close on 19 October 2020, the adverse effect must occur before that date.

In simple terms, if you have not been adversely affected at some stage between the 14 July 2020 and 19 October 2020, you are not entitled to make this claim.

What records should I keep?

HMRC is clear that the taxpayer should make an honest assessment of the performance of its own business. However, the business owner should also keep records of how the business was adversely affected. These records could include:

·         Dates when staff were unable to work due to illness, shielding or caring responsibilities

·         Dates when the business was physically closed due to lockdown restrictions

·         Receipts for additional costs incurred

·         Contemporaneous sales records that show a reduction for particular periods 

Useful examples and further guidance is available here:

https://www.gov.uk/guidance/decide-if-your-business-has-been-adversely-affected-for-the-self-employment-income-support-scheme

When can I make the claim?

HMRC have now opened their portal to make the second SEISS Grant. You must make your claim by 19 October 2020.

How much can I claim?

As with the first grant, HMRC will work out how much you’ll get based on your average trading profits in the past 3 years. Whilst the first grant covered 80% of 3 months’ worth of your average trading profits, this second claim will cover 70% of 3 months’ worth of your average trading profits. The maximum amount you can get under this grant is £6,570.

A simple way to cross check the approximate amount you are entitled to is by using the following formula:

First grant received / 0.8 x 0.7 = approximate value of second grant

How can I claim?

You will need to make this claim yourself. Agents are not able to make the claim on your behalf. To start your claim use the following link:

https://www.tax.service.gov.uk/self-employment-support/enter-unique-taxpayer-reference

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