On Friday (29 May 2020) evening the Chancellor of the Exchequer Rishi Sunak announced an update to the SEISS. This is a quick summary of the information that was released.
Self-employed individuals, including members of partnerships, are eligible if they:
• submitted their Income Tax Self-Assessment tax return for the tax year 2018-19;
• continued to trade in 2019-20 and intend to keep trading in 2020-21;
• carry on a trade which has been adversely affected by COVID-19;
• have average self-employed trading profits of no more than £50,000 and at least equal to their non-trading income.
Individuals can continue to work, start a new trade or take on other employment including voluntary work, or duties as an armed forces reservist.
Eligible individuals can claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, and capped at £7,500 in total.
Applications for the first grant opened on 13 May 2020. Applications for the first grant will close on 13 July 2020.
Second and Final Grant
Eligible individuals can claim a taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profit, and capped at £6,570 in total.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus when applying for the second and final grant. An individual does not need to have claimed the first grant in order to be eligible for the second and final grant.
Applications will open in August 2020. Further information on the second grant will be available on gov.uk on 12 June 2020
We will advise you of more information as soon as it becomes available on 12 June 2020.
Please contact me if you have any questions.
Helping you navigate your business in challenging times.
Click Here to help your business with Tools, Information and Resources with our Covid-19 Business Continuity Hub