Relevant for all Self-employed individuals and partners...

Further to our guidance for the self employed article, please note that the impending deadline for the application of the first SEISS grant is 13 July2020. Individuals can claim through their self assessment portal OR by phone, but this must be before the 13 July 2020 deadline.
 
The second and final SEISS grant will be available to claim in August. The aim of the second grant is to further assist those self employed individuals who are still adversely affected by Coronavirus.

The second SEISS grant’s criteria for initial eligibility will be based on the first grant’s criteria. Please see our previous article namely ‘Guidance For the Self Employed’ for the criteria.

Clarification has now been given as to the dates that someone needs to be “adversely affected” by Coronavirus in order to claim each grant.
 
These have been subsequently changed since the first grant was announced and now the first grant will be available to those who were adversely affected before 13 July 2020 and the second SEISS grant will only be available to those who were adversely affected on or after 14 July 2020. 

Individuals do not need to claim grant one in order to claim grant two. They are separate.

Both grants will still be based on the average trading profits for 3 months and the grant will be paid in full as long as you satisfy the criteria on the specified dates. 
 
There is no restriction for the length of time you are adversely affected or the financial loss suffered.
 
The second SEISS grant however, will be paid at 70% of the average trading profits for 3 months and capped at £6,570, whereas the first grant is for 80%with a cap at £7,500.
 
You should however keep evidence to demonstrate how you were adversely affected along with the relevant dates, in case it is ever queried in the future.

HMRC state that “adversely affected” can include the following –

• The business owner is unable to     work because they:
      – are shielding
      – are self-isolating
      – are on sick leave because of coronavirus
      – have caring responsibilities because of coronavirus

• The business has had to scale     down or temporarily stop trading because:
      – the supply chain has been interrupted
      – there are fewer or no customers or clients
      – staff are unable to come in to work.

This is not an exhaustive list and for example business owners who have incurred additional costs to comply with physical distancing requirements may still be deemed adversely affect, as would have suffered a reduction in profits as a result of Coronavirus.

Please remember- the grants are considered as taxable income.