Get my latest blog post direct to your inbox every week!

    

01908 774323

 

    

Second Self-Employed Income Support Scheme Announced

SEISS round two ...

Click here to view a mobile version of this blog post  
 
 

POSTED BY HELEN BEAUMONT ON 10/06/2020 @ 8:00AM

I was heartened to hear the announcement that many individuals will receive a second payment from the Self-Employed Income Support Scheme in August ...

Taxpayers can apply for a second and final round of the Self-Employed Income Support Scheme in August!

Taxpayers can apply for a second and final round of the Self-Employed Income Support Scheme in August!

copyright: langstrup / 123rf

Taxpayers should apply for a further 3-months of SEISS grant, which will be paid at a reduced level compared to the first. The first SEISS grant deadline is the 13th July 2020 so if you haven't already applied, then get on it soon.

"The Chancellor has warned that this will be the final SEISS payment!"

If you wish to apply for the second payment, applications will open in August. Further details of the timings will be released by HMRC on the 12th June 2020, and I will write more after we know the full details. There will be a mini-budget announcement in early July designed to help stimulate the economy in combination with the second SEISS payment.

Instead of the previous 80% equivalent of the taxpayers' annual average profits, this one will be set at 70% and will be capped at £2,190 per month so the maximum amount payable will be £6,570 to cover the three month period.

HMRC factsheets confirm the same qualifying conditions for the second grant as was for the first. There are no indications that self-employed individuals who were excluded from the first SEISS grant will be eligible for this one.

Existing claims will not be rolled over, so a second payment is not automatic. Taxpayers will have to apply for this one in the same way as they did the first one and will need to confirm that their business has been adversely affected by the Coronavirus outbreak. In reality, this will likely be a checkbox on the application form, the same as for the original application.

The term 'adversely affected' is not actually defined in the HMRC factsheets which sets our the Self-Employed Income Support Scheme conditions, but guidance indicates it would mean a reduction or temporary halt in business activity due to:

  • supplies not arriving

  • fewer customers

  • staff unable to work

Although there is no monetary threshold for this test, I'd recommend business owners keep records of how the business has been affected by the Coronavirus outbreak in case HMRC asks questions in the future. It's better to be safe than sorry as you don't want them asking for their money back in the future or issuing punitive tax penalties against you.

So far, 2.3 million claims for the Self-Employed Income Support Scheme have been made out of a possible 4.3 million self-employed individuals in the United Kingdom. For the other 2 million or so, their profits may be too high, or they simply haven't been affected by Coronavirus.

"You don't have to claim the first SEISS grant in order to be eligible to claim the second one!"

Don't forget that both Self-Employed Income Support Scheme grants are taxable and will be will need to be reported on your 2020/21 tax return. It is also outside the scope of VAT as it is not classed as turnover.

Until next time ...



HELEN BEAUMONT

Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about , do call me on 01908 774323, leave a comment below or click here to ping over an email and let's see how I can help you.

Leave a comment ...

Share the blog love ...

Google AMP  /  Précis  

Share this to FacebookShare this to TwitterShare this to LinkedInShare this to PinterestShare this via Buffer

#SEISS #Round2 #SelfEmployed #IncomeSupportScheme #Tax #MiltonKeynes #UK

About Helen Beaumont ...

 

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.