The Chancellor also announced plans to extend the SEISS for those people whose trade continues to be, or is newly, adversely affected by Covid-19. 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 more recently.
Claims for the first SEISS grant, which opened on 13 May, must be made no later than 13 July. Eligible self-employed people must make a claim before that date to receive the first SEISS grant (a taxable grant of 80% of their average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total). To date HMRC have received just under 2.5 million claims worth £7 billion.
It is important to note that as with the first SEISS grant, the eligible individual must make the claim themselves. If the accountant or agent submits a claim on behalf of their client, this will trigger a fraud alert and will result in significant delays to payment. However, as accountants we can assist in the preparation of claims and ensure that our clients are in possession of the relevant information. The claims process is relatively simple as HMRC calculate the amount of SEISS payable. Please be aware that additional information regarding the second SEISS grant will be released on 12 June.