Self-Employment Income Support Scheme Update on 2nd payment
HMRC have updated the guidance relating to the second Self-employment Income Support Scheme Grant, which will be available to claim in August. This will be the final grant.
- You must make your claim for the 1st grant on or before the 13th July 2020, if you have not already done so.
- You can claim the second grant, even if you did not make a claim for the first grant.
- The grant will be worth 70% of your average monthly trading profits, paid in one instalment, covering a further 3 months’ worth of profits, totalling no more than £6,570.
- HMRC will work out if you are eligible, and how much you can claim.
You can make a claim if 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 on or after the 14 July 2020
Your business could be adversely affected by coronavirus if, for example:
you’re unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
- 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
You must make the claim yourself, and cannot ask your agent to complete this for you. Further guidance from HMRC here
Key Points to Note:
- To qualify you must have been adversely affected on or after the 14th July. If you are back working full time now you may not qualify.
- You must keep records to prove you qualified.
- HMRC have stated they will be investigating claims in the future with possible 100% tax penalties.
- The online service to claim is not yet open. We expect it to be the same claim procedure as the initial grant.
Please do not hesitate to contact us with any questions you may have.