SEISS – are your clients eligible for a second grant?

From today 17 August 2020, the self- employed will be able to claim a second support grant.  This is deemed to cover the period June July and August.

Claimants do not need to have claimed the first grant in order to claim the second.  They can claim any time between their allocated date and the 19‌‌ October 2020.  HMRC have reminded agents that they cannot make a claim for their client as this will trigger a fraud alert and lead to a delay in the claim.

The grant will be for 70% of average monthly trading profits for three months, subject to a cap of £6,570.

The eligibility criteria are the same as for the first grant. Therefore, those not eligible for the first grant will generally also not qualify for the second.

To check eligibility see here

However, the second grant claim has an additional time sensitive requirement to be confirmed when confirming that the business has been adversely affected.

To qualify an individual must confirm that they are adversely affected on or after 14 July 2020.

What is adversely affected?

There are two categories:

• Unable to work; or
• Business continues to be affected

 Unable to work is classified as:

• shielding or self- isolating
• on sick leave because of COVID 19
• have caring responsibilities because of COVID 19

 Business continues to be affected where

• work is scaled down; or
• there is a temporary stop to trading; or
• incurred additional costs because:
• supply chain has been interrupted
• fewer or no customers or clients
• staff are unable to come in to work
• one or more of contracts has been cancelled.
• had to buy protective equipment so you could trade following social distancing rules.

 HMRC state

‘There is no minimum threshold over which a business’s income, costs or activity need to have changed by, but your clients will be asked to keep appropriate records as evidence of how their business has been adversely affected.’

 HMRC have provided some example scenarios of when the second grant may or may not be claimed including the following:

‘A builder worked on short-term contracts on different building sites. She only had half the work she would normally have in April 2020 and May 2020 because some of the building sites were closed. She was able to work as normal from June 2020 because the building sites reopened’.

 She was eligible for the first grant but should not claim the second as she does not satisfy the adversely affected condition on or after 14 July 2020.

For additional examples see here

 For further information including  details needed for a claim see here