Second round of Self-Employment Income Support Scheme now open

Self-employed people whose trade has been hit by Coronavirus can now apply for a second, and final, Self-Employment Income Support Scheme (SEISS) grant of up to £6,750 from the government.

The online claims service on GOV.UK opened on 17 August and the deadline for claiming the second grant is 19 October. The claims window is open for a four-day period but anyone who thinks they may be eligible and hasn’t been contacted by HMRC has until October to make a claim. To be eligible for the Self-Employment Income Support Scheme, more than half of a claimant’s income needs to come from self-employment.

The scheme is open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. Under the first payment earlier this year, self-employed workers who qualified had been in line for a grant of 80% of their average profits, up to £2,500 a month for three months.

This was paid in one instalment, of up to £7,500 and applications for this first round of grants closed on 13 July. As of today (Monday 17th August), those eligible can claim the second, slightly less generous, grant covering 70% of the applicant’s average monthly trading profits. The grant will be made in a single payment, covering three months and capped at £2,190 a month, or £6,570 in total.

Applicants will need to confirm their business has been affected by the virus on or after 14 July, but they would not need to have taken the first grant to be eligible for the second.

If you think you are eligible and haven’t been contacted by HMRC, you can go onto the HMRC’s website, which will tell you if you are eligible, and when you can make a claim.

HM Revenue and Customs (HMRC) has recently admitted thousands were paid too much from the first tranche of the scheme, but it will not be demanding repayment. Approximately 15,000 payments – less than 0.6% of the total – were miscalculated.

If you have any queries about SEISS, please contact Iain Paulin at iain.paulin@chiene.co.uk or call 0131 558 5800.