Phase 2 Details & Key Dates
Businesses have been asking the SME Support Forum about the self-employment grant that will be available to apply for in August, so we wanted to update you on the details of Phase 2 of the SEISS.
- Phase one of the Self-Employment Income Support Scheme came to an end on 13 July, with the second stage of the scheme starting from 14 July.
- The online system will open for claims from 17 August.
- Claims under phase one must have been made on or before 13 July.
- Even if you have not claimed under phase one, you can claim under phase two, but only if your business was adversely affected on or after 14 July 2020.
- The second phase covers 14 July until 19 October.
- This grant will be worth 70% of average monthly profits – capped at £6,570. As with the first grant HMRC will contact you if you are eligible.
Who can claim?
You can claim 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. Your business could be adversely affected by coronavirus if, for example you are unable to work because you:
- Are shielding
- Are self-isolating
- Are on sick leave because of coronavirus
- Have caring responsibilities because of coronavirus
- You have had to scale down, temporarily stop trading or incurred additional costs because:
- Your supply chain has been interrupted
- You have fewer or no customers or clients
- Your staff are unable to come in to work
- One or more of your contracts have been cancelled
- You had to buy protective equipment so you could trade following social distancing rules
You must keep evidence to confirm your business was adversely affected at the time you made your claim. All the following must also 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
- You cannot claim the grant if you trade through a limited company or a trust.
What do you need to claim?
To claim you will need your:
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- Self-Assessment UTR
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
- Bank account number
- Sort code
- Name on the account
- Your address linked to your bank account
When will SEISS payments be paid?
You will find out whether you will get the grant as soon as you have made your SEISS claim. If they approve your claim, the money should come through within six working days.
Important to Note
Make sure you keep a copy of all records associated with your claim, the same as you would for all your other self-employed records. You should keep a record of:
- the amount you claimed
- your claim reference number
- evidence that your business has been adversely affected by coronavirus
This is so you can report your grant:
- on your Self-Assessment tax return
- as self-employed income if you claim Universal Credit
- as self-employed income if you claim tax credits