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
 
Ruth Pearson
25th February 2021 HMRC Advisory Fuel Rates

HMRC have issued the new advisory fuel rates (AFR) which come into effect from 1st March 2021.   They have increased by 1p per mile for petrol and diesel vehicles with engines of 1400-2000cc reflecting a small increase in fuel prices over the last quarter.   The advisory electricity rate for fully electric cars remains…

Read More »

Keith Day
19th February 2021 VAT deferral new payment scheme – join from 23 February

If you deferred paying VAT due in the period from 20‌‌ March to 30‌‌ June‌‌ 2020, you should pay it by 31‌‌ ‌March‌‌ ‌2021 if you can.   If you can’t afford to pay by 31‌‌ March‌‌ 2021, you can join the VAT deferral new payment scheme and pay your deferred VAT over a longer period.   The online service…

Read More »

Scott Butcher
19th February 2021 Deadline looms for CBILS & BBL schemes

We are now just over a month away from the 31st March 2021 deadline for applications for the Bounce Back Loan (BBL) and Coronavirus Business Interruption Loan Scheme (CBILS).   The schemes were introduced to provide businesses with much needed working capital during the global pandemic, businesses benefited from no capital repayments being required for…

Read More »

Fiona Mann
19th February 2021 News: HMRC announce no penalty charge for late Self Assessment

Today HMRC have announced that they will not be charging Self Assessment tax payers a 5% late payment penalty if they pay their tax, or set up a payment plan by 1 April 2021.   This year, because of the impact of the COVID-19 pandemic, HMRC is giving taxpayers more time to pay or set…

Read More »

Vanessa Pearson
18th February 2021 IR35 – HMRC announce ‘light touch’ approach to penalties

The new private sector off-payroll rules are due to start from 6 April 2021 and HMRC have published their latest guidance – here.   The changes move the responsibility for determining a contractor’s IR35 status from the worker’s personal service company to the end client engaging them, where the end client is a medium/large business.…

Read More »

Lisa Smith
11th February 2021 VAT payments deferred due to Coronavirus

If, due to Coronavirus, your business deferred VAT payments due between 20 March and 30 June 2020 and you still have payments to make, you can: pay the deferred VAT in full, on or before 31 March 2021, join the VAT deferral new payment scheme – the online service is open between 23 February and…

Read More »