SEISS Second Grant Applications Opening Soon
Self Employment Income Support Scheme (SEISS)
The government has made some grants available for self employed people, these grants are not repayable but are taxable as part of your business profits for the year in which they are received.
First Grant – now closed
The first grant was based on 80% of three month’s average trading profit, as calculated for tax purposes. It was paid in a single instalment, capped at £7,500. Applications for this grant closed on 13 July 2020.
Second Grant – coming soon
The second grant is based on 70% of three month’s average trading profit. It will be paid in a single instalment, capped at £6,570. Applications will open on 17 August 2020.
As with the first grant HMRC will contact you if you’re eligible.
- You have to be trading when the claim is made, (or would be trading but for the conditions caused by Covid 19).
- You must have traded in the tax year ended 5 April 2020
- You must be intending to continue to trade in the tax year ended 5 April 2021
- You must have lost profits due to the coronavirus
- You must have profits of no more than £50,000 averaged over the last three tax years to 5 April 2019
- The profits will be taken before any claim for farmer’s averaging.
How to claim
- Application will be by an on line portal on the HMRC website
- Or you can call 0800 024 1222
- Unfortunately, we cannot claim on your behalf, but we can assist with any queries
The government has also made available some loan schemes which are administered by most of the major banks. It must be remembered that these are loans are repayable.
- The scheme is aimed at providing access for small and medium-sized businesses to loans of up to 25% of turnover to a maximum of £50,000.
- The Bounce Back scheme will be delivered through a network of accredited lenders and there won’t be any fees or interest to pay for the first 12 months.
- Your business will be fully responsible in terms of repaying the loan, but government backing is given to the bank making the loan to speed up the lending process.
- Loan terms will be up to 6 years with no repayments during the first 12 months.
- The interest rate is 2.5%
- The loans are generally very simple to apply for and do not necessitate the submission of any formal business plans.
You can apply for a loan if your business:
- Is based in the UK
- Has been negatively affected by coronavirus
- Was not an ‘undertaking in difficulty’ on 31 December 2019
You can claim for the Bounce Back Scheme through your bank or the government website.
There is another loan scheme called the Coronavirus Business Interruption Loan Scheme (CBILS) that provides the option for a larger loan (over £50,000 and up to a limit of £5,000,000) however the lending criteria is much more complicated. You can read more about this scheme on our fact sheet.
If you need any help or support please do get in touch.