On 29th May, The Chancellor, Rishi Sunak, announced that the Self Employment Income Support Scheme (SEISS) has been extended to allow all self-employed workers in the UK to claim a second grant covering an additional three months profit.
Unlike the first grant, this time it will be restricted to 70% of the average monthly trading profits based on the previous 3 years’ self-employed income, covering the financial years 2016/17 to 2018/19. If your average annual self-employed profits are in excess of £50,000 or your average self-employed income is less than 50% of your total income, you will not be eligible able to make a claim.
The new claims will be able to be made sometime in August (date to be confirmed) and if you have not made your first SEISS claim you have up until 13th July in order to make your claim.
The conditions for a claim have not changed. To be eligible you have to be a self-employed individual or a member of a partnership and all of the following must apply:
Examples of your business being adversely affected by coronavirus could be:
Assuming these criteria are met, there are further financial conditions – the individual’s trading profits for 2018/19 must be less than £50,000 and more than 50% of their total income. If this condition is not met then a three year average across the tax years 2016/17 to 2018/19 can be considered instead, but still must be less than £50,000 and more than 50% of their average total income.
For more information about how to apply for the first grant read our previous article here.