HMRC have extended the Self-Employment Income Support Scheme, you will be able to claim for a second grant from 17 August 2020.
You can only claim for the second grant, if your business has been adversely affected on or after 14 July 2020. The second grant will be calculated in the same way the first grant was. However, the second payment will be a final taxable amount worth 70% of your average monthly trading profits, as opposed to the first payment of 80%.
If you are eligible, you can make a claim even if you did not make a claim for the first grant.
Who can claim
You can claim for the grant if you are a self-employed individual or a member of a partnership and your business has been adversely affected on or after 14 July 2020. To view HMRC’s criteria please click here.
To be able to claim for the scheme, all of the following must apply:
- you traded in the tax year 2018 to 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by Coronavirus
If you’re eligible
If you are eligible for the scheme, you must make your claim between 17 August 20 and 19 October 20.
Taxable grant calculation
The payment will be calculated in the same way as the previous one. This is based on your average trading profit over the past three tax years (excluding 5 April 20).
To calculate how much you will be entitled to, you will need to do the following calculation –
Add up your last three years trading profits and divided them by three, to get an average yearly income. Then divide this by 12, to calculate your average monthly income and times by 70%, then times by three months.
This is the amount you will be entitled to. The grant amount HMRC calculate for you will be paid directly into your bank account, in one instalment.
For more detailed examples of how the grant is calculated, please read our previous post from the initial Self-Employment grant.
For additional information provided by HMRC, please visit their website.
If you have any queries do not hesitate to contact us by email on firstname.lastname@example.org.