Self-Employed Income Support Scheme (SEISS) – further announcements
On 29 May 2020, the Chancellor announced an extension to the Self-Employed Income Support Scheme as well as calling time on the first stage of SEISS.
For the first stage, it has been announced that a claim has to be made by 13 July 2020. If the claim is not submitted by that date, the ability to claim under the first wave of SEISS is lost. Therefore, if you have been putting this off, you now need to act in order to secure the funds.
We now know that there will be a second round of claims, which can be made from August 2020. We do know that the amount to be claimed will be 70% of the qualifying profit, as opposed to 80% for the first round of claims. Also, the claim will be limited to £6,570, compared to £7,500 for the first round.
The wording suggests that the people who can qualify are those who qualified under the first round. Therefore it will be self-employed people:
- Whose business has been affected by the coronavirus
- Who were trading before 5 April 2019 and submitted relevant tax returns before 23 April 2020
- Whose business is still continuing, where their trading profit was less than £50,000 for the qualifying periods and, their trading profit is more than half of their total income for the same period
Sadly, there is no suggestion that the people who were excluded in the first round of claims will be able to benefit this time round.
Further help for self-employed businesses is welcome, but it does also appear to be a missed opportunity to help those who missed out on this assistance. For example, the Chancellor might have added on people who started to trade in 2019/20 and who have submitted their 2019/20 tax returns before, say, 23 July 2020.
For further advice, please contact Chris Hodgson at email@example.com.