SELF EMPLOYMENT INCOME SUPPORT SCHEME (SEISS) – ANNOUNCEMENT OF SECOND GRANT
You may have already seen that on Friday evening, the government announced that they would be extending the Self Employment Income Support Scheme (SEISS) scheme with a second and final grant being payable in August 2020 to assist those who are self employed and still being adversely affected by Coronavirus. This is to remain in line with the extension to the Coronavirus Job Retention Scheme (CJRS) which is available to employers.
The second SEISS grant will cover the 3 months of June, July and August and will again be paid in a single instalment in August.
The eligibility criteria remains the same as the first grant, meaning that only those who were initially eligible for the first grant, will be potentially eligible for this second one. Unfortunately the scheme is not being extended to those who commenced self employment on or after 6 April 2019.
If you are eligible for the first Self Employment Income Support Scheme grant but have not yet submitted your claim, you will need to ensure this is done by the deadline of 13 July 2020.
The two claims are independent of each other so you do not need to have claimed the first grant, to be able to claim the second one, if for example you have only been more recently affected by Coronavirus.
When claiming the second SEISS grant in August, you will need to declare that you have still been adversely affected by Coronavirus during the period and should keep evidence to demonstrate this, for example business accounts showing a reduction in turnover or details of the dates your business had to close or you and/or your staff were unable to work.
For the purposes of the grant, the way that the grant is calculated will also stay the same, but this time the grant will be for 70% of the average monthly profits as oppose to 80% like the first grant. This is to fall in line with the claim restrictions being introduced for the CJRS.
Therefore if you have previously claimed the first SEISS grant and are eligible to claim for the second one, you will be able to calculate how much grant you will receive by –
- Taking the amount of the first grant you received and multiplying it by 87.5%
(The equivalent of dividing it by 80% and multiplying it by 70%)
- This will be capped at £6,570 (1st grant was £7,500)
Claims will not be able to be made until August and we anticipate that the process for submitting those claims will remain the same as the first grant.
The above details are those that have currently been announced but we will be able to provide further information when additional guidance is released on 12 June.
If you do have any queries, then please get in touch with your usual point of contact at Albert Goodman who will be able to assist you.
See our Coronavirus Information Portal.
Make a claim.