DING DING – SEISS Round 2!

5th August 2020

Claims for the second round of the Self Employed Income Support Scheme (SEISS) can be made from 17 August to 19 October.  The online claims service is not available yet: HMRC are expected to release further information shortly.

 

The second SEISS payment:

  • Amounts to 70% (previously 80% for the first grant) of average monthly trading profits
  • Covers 3 months’ worth of profits
  • Is capped at £6,570 (previously £7,500 for the first grant).

 

Eligibility tests and the definition of average monthly trading profits remain the same as for the first payment.  However, in order to qualify for the second grant the business must be ‘adversely affected by COVID-19’ on or after 14 July 2020.  Some examples of ‘adversely affected by COVID-19’ can be found here.

 

There is no requirement to have made a claim for the first grant in order to qualify for the second.

 

Both SEISS grants must be reported in full on the 2020/21 Self Assessment Tax Return, regardless of the basis period of the accounts, method of accounting, or date of receipt of the money.

 

If any individual claims an amount they are not entitled to, they must notify HMRC and repay it by the latest of:

  • 90 days after the legislation was given Royal Assent, so by 20 October 2020, or
  • 90 days after the date the grant was received.

 

Failure to do so can result in recovery of the grant, plus interest and penalties.  If an individual knew they were not entitled to the SEISS payment when they received the money, they could face a ‘deliberate and concealed’ penalty of up to 100%.  Further details of how to repay HMRC can be found here.

 

It has been made quite clear that this will be the final extension of the scheme, and therefore no further payments are expected.

 

If you have any queries regarding the SEISS scheme then please speak to your usual Whiting and Partners contact.



 
Other items in Blogs
 
Chris Kelly
25th September 2020 COVID-19 Business Support – Winter Economy Plan

  With the Autumn Budget cancelled the Chancellor has announced a Winter Economy Plan introducing a package of measures to support businesses.   The highlights are:   The Coronavirus Jobs Retention Scheme (CJRS) – Will end as planned on 31 October 2020.   A new Job Support Scheme – To support viable UK employers who…

Read More »

Steven Denton
25th September 2020 HMRC Job Support Scheme (JSS)

On 24th September the government announced the launching in November of the Job Support Scheme to replace the existing Furlough Scheme that is feted to end on 31st October. The JSS is to run from 1st November through to 30th April, but initial rules may be amended after three months.   To qualify for the…

Read More »

Matilda Mawson
25th September 2020 2019/20 Pension Savings Statement – Request yours today!

  If you have made contributions to a registered pension scheme of more than £40,000 in the tax year, your scheme administrator should automatically send you a pension savings statement by 6 October 2020. This will detail your total pension input for the 2019/20 tax year as well as your pension input for the 3…

Read More »

Ian Piper
24th September 2020 Corporation Tax due soon: Not necessarily.

Companies with 31 December 2019 year ends will be due to pay their corporation tax on 1 October 2020. If that company is expecting to suffer a loss during the 2020 financial year, perhaps due to COVID-19 related reasons, it should be possible to carry that loss back one year and claim a refund of…

Read More »

Ruth Pearson
17th September 2020 Fuel Rates From September 2020

HMRC have updated the latest company car advisory fuel rates. These rates apply from 1 September 2020.   The guidance states that you can use either the previous or current rates, for up to one month from the date the new rules apply.   The new rates per mile are below: Engine size Petrol LPG…

Read More »

Robert Baxter
16th September 2020 Redundancy Pay & Payment in Lieu of Notice (PILON)

HMRC have introduced legislation which ensures employee’s statutory rights, including redundancy pay and payment in lieu on notice (PILON), are based on an employee’s normal pay and not their furlough pay.   Redundancy pay   An employee is entitled to redundancy pay if they have been working for their current employer for 2 years or…

Read More »