Eligible self-employed people will be able to claim a second and final SEISS grant in August; this will be a taxable grant worth 70% of their average monthly trading profits for three months, paid out in a single instalment and capped at £6,570 in total.
The eligibility criteria for the second grant will be the same as for the first grant. People do not need to have claimed the first grant to claim the second grant: for example, their business may have been adversely affected by COVID-19 (coronavirus) more recently.
However, in order to claim the second grant, businesses will need to confirm that they were being “adversely affected” due to Covid on or after 14 July 2020. So if, by that time, you have re-opened your business and you’re back to normal operations, then you won’t be “adversely affected” on or after 14 July, so you’ll not be eligible for the second payment.
The Government have published some guidance as to what they mean by “adversely affected” which includes:-
“you’ve had to scale down or temporarily stop trading because:
- your supply chain has been interrupted
- you have fewer or no customers or clients
- your staff are unable to come in to work“
There is also a good article by journalist Martin Lewis on his MoneysavingExpert website, where he says:
“HMRC is not looking to try to catch people out who are making honest declarations. So even if you’re working all hours and bringing some money in, if your business isn’t where it should be and coronavirus is to blame, then you’re entitled to say yes to the grant. And the payment isn’t structured to be proportionate to the impact, it’s binary – if you’re due money, you’re due it all; if you’re not, you’re not due a penny.”
The deadline for making the second claim is 19 October 2020, so even if you’re not affected on 14 July 2020, you may be affected by further restrictions such as localised lock-downs, you may be a retailer hit by fewer customers due to compulsory face masks, or if yourself, staff or customers catch Covid, you may have to close your business for deep cleaning and/or self isolation, etc. So, even if you’re not currently adversely affected, don’t forget to bear the support scheme in mind if you become affected during August and September.