Deadline to apply for SEISS grant approaching
BAGMA members are reminded that the deadline to apply for the first grant under the Self-Employment Income Support Scheme is fast approaching.
Members, who are self-employed or a partner in a trading partnership, have until Monday, July 13, to make a may claim for a Self-Employment Income Support Scheme (SEISS) grant.The taxable grant is worth 80% of your average monthly trading profits, paid out in a single lump sum covering three months’ worth of profits and is capped at £7,500.
You will be eligible to make a claim for the first SEISS grant if:
- you traded in 2018/19
- you submitted your 2018/19 tax return on or before 23rd April
- you have traded in 2019/20
- you intend to continue to trade in 2020/21
- you are trading when you apply, or would be had it not been for Covid-19
- your trade must have been adversely affected by Covid-19
In addition, your trading profits must be no more than £50,000 and more than half of your total income for either:
- the tax year 2018 to 2019
- the average of the tax years 2016 to 2017, 2017 to 2018, and 2018 to 2019
HM Revenue and Customs (HMRC) should already have contacted you if you are eligible to make a claim and this must be made using a dedicated HMRC portal.
On May 29, Chancellor, Rishi Sunak, announced an extension to the SEISS scheme and a second grant will be available from August.
As yet, full details are unknown about how the extended scheme will work or when the online portal will be open for making claims. However, the amount of the grant will be calculated at 70% of annual average profits, capped at £6,570 across the three months the grant is intended to cover.
The conditions that need to be satisfied to qualify for a second SEISS grant remain the same as those for the first.
When you make a claim for the second grant, it is expected you will need to again confirm that your business has been adversely affected by COVID-19, on or after July 14, 2020.
HMRC advises that your business could be adversely affected by coronavirus if, for example:
You are unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
You have 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
Find out more about the criteria for the SEISS here
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