Second SEISS scheme
Full details are currently being worked on but here is what we do know:
- The grant will be calculated at 70% of tax payer's annual average profits (the previous grant was for 80%);
- There is a monthly cap of £2,190 (previous grant was £2,500);
- The grant is payable for 3 months;
- To qualify, the business must have been adversely affected by the pandemic.
Currently, there has not been any clarification as to what adversely affected actually looks like but, as HMRC have placed more emphasis on this criteria for the second grant, it is likely that additional guidance on this area will be released shortly. Some HMRC papers have suggested examples that might mean you have been adversely affected:
- Temporarily stopped trading
- Trading has been scaled back
- Owner(s) have been forced to not work due to shielding, self-isolating etc.
It is important to remember to document and keep a record of why you feel the business has been adversely affected and during which periods in case HMRC decide to launch a review. It is vital to record the periods you have been affected, particularly for this grant, as eligible claims will count if you have been adversely affected on or after 14th July 2020.
It is also really important to remember that this is not the same as furlough. You can still work and be adversely affected so, if you are able to work safely then you can and this will not stop you being eligible for the grant.
The first SEISS grant will be closed to new claims from 13th July 2020 so, if you are eligible and have yet to make a claim we urge you to take a look and make the application as soon as possible.
As tax agents, we are not able to make these claims for you but we can help advise what you might need to do and what to expect. If you are unsure about anything let us know and we will help as best we can.