It seems a very long time since Rishi Sunak announced the first Self Employed Income Support Scheme grant, and the second is finally available! The scheme opened for the second wave of claims on the 17th August.
Key points around the second grant:
- The scheme allows self employed people whose business has been adversely affected by Coronavirus to claim support from the Government.
- To qualify for the second grant, your business must have been adversely affected since the 14th July 2020. It is therefore possible for people to have claimed for the first grant and not need to claim for the second, OR to claim for the second where they didn’t before.
- There is no change to eligibility around the dates when you started self employment. If you were unable to claim under the first grant opportunity because you weren’t self employed at the right dates, unfortunately you will still be unable to claim.
- The grant will be for 70% of your average profits over the three year period up to 2019 as originally included. This has been reduced in line with the reduction in the level of support offered through the Coronavirus Job Retention Scheme, or Furlough Scheme.
- The grant will be capped at £6,750 for the three months to 31st August 2020, or £2,190 each month, and will be paid in one lump sum.
- HMRC are writing to all self employed who are eligible to allocate them a date after which they can claim. Once you have that date, you will need to claim here. We cannot claim on your behalf, but are happy to help if you need us!
- You can claim after the date you are allocated.
- Payment will be received within 6 working days to the bank account details you provide.
- You must be able to show that your business has been adversely affected by the pandemic as of the 14th July 2020. This could be through lower income or increased costs as a direct result of Coronavirus.
- Remember that the funds received through the grant are taxable, and will need to be included in your income figures for the related tax return.
If you’re unsure of how the second grant will apply to you, please get in touch.
More details can be found on the HMRC website here.