Chancellor Rishi Sunak announced the Self-Employment Income Support Scheme (SEISS) in March, and already billions of pounds worth of claims have been paid out under the scheme. The scheme was recently extended until October 2019, meaning eligible claimants will be able to receive a second and final grant from the scheme later in the year.
What is the difference between the first and second grant?
The second SEISS grant will be worth slightly less than the first grant, however the way the second grant is calculated is the same as the first.
You’ll get a taxable grant based on your average trading profit over the last three tax years.
Chris Brazier, partner at B P Collins law firm, explained to Express.co.uk: “The only material difference between the second and first grant is that the maximum value of it has been reduced from £7,500.
“Under the second grant, eligible individuals will receive 70 percent of their average monthly trading profits capped at £6,570 which again will be paid out in a single instalment and will cover 3 months worth of profits.
“This reduction is consistent with the reducing value of payments under the Coronavirus Job Retention Scheme.”
You will be able to apply for the second grant even if you did not claim for the first grant, providing you are eligible for the scheme.
READ MORE: Self employed scheme extension: When can I claim second grant?
What are the requirements for claiming the second grant?
As was the case with the first grant, you will need to prove your business has been adversely affected by the coronavirus crisis on or after July 14, 2020 to receive the grant.
Dan Stopp, UK Accounting Manager at AI accounting tool Bokio, told Express.co.uk: “The eligibility for the second grant is more or less the same as for the first one, namely: your business has been adversely affected by COVID-19, you have a tax return for 2019, and your trading profits are no more than £50,000 per year.
“Although you don’t need to have claimed the first grant in order to be eligible for the second, you will however be required to prove that your business has been adversely affected by coronavirus on or after July 14, 2020.”
Before you apply, you will first need to check your circumstances reflect the eligibility criteria listed on the Government webpage for the scheme HERE.
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What other help is available for self-employed people?
If you are not eligible for the Self-Employment Income Support Scheme, there are other initiatives in place to help people at this time.
You may be able to claim for Universal Credit, which is a Government benefit.
You may also be able to defer Self Assessment Income Tax and VAT payments.
There are Government grants available for businesses which pay little or no business rates.
There are also Bounce Back Loans and the Business Interruption Loan Scheme.
More information on support for self-employed people is available on the Government website.