Good news for the self-employed! You’ll be both pleased and relieved. The Government is extending its Self-Employment Income Support Scheme (SEISS) and will pay out another single grant covering June, July, and August. In making this announcement just the other day, the Chancellor, Rishi Sunak, confirmed that this would be the final such payment.
How does the second grant for the self-employed work?
If you’re eligible, you can claim this second grant now. It will be set at 70% of your average monthly trading profits, with a maximum of £2,190 per month – £6,570 overall.
HMRC will pay the amount in a single instalment. The idea is to that it will cover you for business lost from July 14th.
Don’t hold back or you’ll miss out
You must make your claim before October 19th 2020. There’s plenty of time – but don’t miss that deadline!
Am I eligible for these grants?
The eligibility criteria are the same as they were for the first grant. The key point is that, even if you didn’t claim for the first grant, you can still claim for the second.
Here’s your eligibility checklist –
- Your average trading profit must be no more than £50,000 per year. There’s no scaling here. A penny over this amount and you get nothing. The period of calculation is the three financial years – 2016-17, 2017-18 and 2018-19. So, to be eligible, your total profits must be less than £150,000 – or £4,167 per month – over those three years.
- More than 50% of your total income must come from self-employment.This is for either your 2018/19 tax return or, if not, the average of your 2016/17, 2017/18 and 2018/19 tax returns. Think about your other sources of income – from dividends, property, pensions, savings, and taxable benefits. For you to remain eligible, the total of these mustn’t be more than 50% of your total income.
- You must have filed a tax return for 2018/19. In other words, you need to have been self-employed before 6 April 2019. The deadline for filing a 2018/19 tax return was Thursday 23 April (extended from January 31st, 2020). If you had fewer than 12 months of self-employment in that 2018/19 year, this will be counted as your total profit for the year. You can’t work out a pro-rata amount.
In Chancellor, Rishi Sunak’s own words …
“Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.
“We stood behind Britain’s businesses and workers as we came into this crisis, and we stand behind them as we come through the other side.
“Now, as we begin to reopen our country and kick-start our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”
Here to help
For us at Mad Hatters Accountancy, our single focus during the months of lockdown has been our clients. This has been an extraordinary and difficult time for so many people. We pledge to support you and your business in every way we can. Self-employed solo-professional, the owner of an SME, or a larger company – it’s the same to us. We’re here to keep you fully in the picture and aware of both the challenges and the opportunities that the coronavirus pandemic has presented.
Whatever you do … don’t miss out on the Self-Employment Income Support Scheme.
Call Sarah on 01908 978500
Send an email.
More than ever – we’re here to help!