Applications have opened for the second round of grants for the self-employed to help them through the Covid-19 pandemic.
Introduced by Chancellor of the Exchequer Rishi Sunak in March, the scheme initially allowed the self-employed claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
The scheme was extended in June, and it is now possible to apply for a second SEISS grant. The second grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
Who’s entitled to the scheme?
You can claim if you’re a self-employed individual or a member of a partnership and all of 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
You can apply for the second grant if your business activity was adversely affected after July 14.
Your business could be adversely affected by coronavirus if 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
When is the deadline for the first grant?
The deadline to apply for the first SEISS grant is July 13.
When can I apply for a second grant?
It will be possible to apply for the second SEISS grant from August 17 with a deadline of October 19.
How to apply
You can make your claim at tax.service.gov.uk
Before you apply you will need the following:
- Self Assessment Unique Taxpayer Reference (UTR) – if you do not have this find out how to get your lost UTR
- National Insurance number – if you do not have this find out how to get your lost National Insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account