Second and final SEISS is now open - read more from GoSimpleTax
SEISS - second and final grant applications now open
What
The SEISS Extension Means For You
In the early stages of lockdown, the government announced support for
sole traders in the form of the Self-Employment Income Support Scheme, or
SEISS.
Just a month after its announcement, 2
million claims were made, totalling £6.1 billion in government support. And
now, with a second grant opening in August 2020, a number of sole traders are
set to benefit from further financial assistance.
We’ve asked Mike Parkes from GoSimpleTax to explain the
terms and help you claim.
How does SEISS
work?
The scheme is available to all self-employed individuals that have
been adversely affected by COVID-19. This is provided that they:
●
Earn the majority of their income through
self-employment
●
Have average annual trading profits of less than
£50,000
●
Have filed a tax return for the 2018/19 tax year
●
Have traded during the 2019/20 tax year and
intend to continue trading in 2020/21
To determine whether or not you were affected by COVID-19, any of the
following must apply:
●
Government orders have meant that your trade or
industry had to close or be restricted in such a way that your trade closed –
or is otherwise adversely affected
●
You cannot organise your work, or your workplace,
to allow staff to work safely
●
Your staff or customers are no longer able to
purchase from you due to restrictions
●
Social distancing has meant that you are not able
to safely serve customers
●
You’ve had contracts cancelled as a result of
COVID-19
●
You have either had to care for others since
lockdown or have been self-isolating
The first grant ended on 13th July 2020, and claimants could receive
either £7,500 or 80% of their average monthly profits over the 2016/17, 2017/18
and 2018/19 tax years (whichever is the lower amount). Applications for the
second grant will open on 17th August 2020, but you must have confirmed by 14th
July 2020 that you have been adversely affected by COVID-19.
Why is there a
phase two?
While the government set a three-month cap on the support, it has
since been agreed that COVID-19 is still
impacting the earnings of some sole traders. As a result, it is necessary for
them to receive another grant in order to stay afloat.
It will also help to support those who may not have initially been
affected by lockdown (and so did not claim the first grant) but have
subsequently suffered a loss of business.
What’s the
difference?
The differences between phase one and two are limited, although the
second grant will be worth 70% of your average monthly trading profits. It’ll
still be paid out in a single instalment that covers three months’ worth of
profits, but will be capped at £6,750 total – almost £1,000 less than the phase
one grant.
Additionally, you can only claim the second grant if your business was
adversely affected on or after 14th July.
Can I continue
working and still claim?
Yes, you can continue to work as
long as you intend to continue trading in 2020/21 in the self-employed role you’re
claiming for. You can even take up other employment if necessary, provided that
the SEISS payments still cover the majority of your income. HMRC will not
penalise you for topping up your income with a little additional earnings to
sustain your household.
Phase two will have a deadline of 19th October 2020. You can find out
more about it on the
GOV.UK site. If you are still losing out on income or opportunities to earn, we
massively recommend you claim the second grant. This is unprecedented levels of
government support and could make the difference between staying afloat or
falling behind.
About GoSimpleTax
GoSimpleTax software submits
directly to HMRC and is the solution you need to log all your income and
expenses. The software will provide you
with hints and tips that could save you money on allowances and expenses you
may have missed.
Trial the software today for
free - add up to five income and expense transactions per month and
see your tax liability in real time at no cost to you. Pay only when you are
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