It has been announced that the Government’s Self-Employment Income Support Scheme will be extended, giving more security to individuals whose livelihoods are adversely affected by Coronavirus in the coming months.
Those who are eligible will be able to claim a second and final grant capped at £6,570.
Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits 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.
An individual does not need to have claimed the first grant to receive the second grant; they only need to demonstrate that they have been adversely affected by COVID19 in this later phase, starting from 14 July.
Subcontractors who are subject to CIS deductions of tax at 20% or 30% which usually result in tax refunds on submission of their returns should set aside 20% or 30% of the SEISS grant to cover the tax payable as the payments of grants have not had tax withheld from them and this may result in the payment of tax in 2020/21 rather than a refund.