Back in mid-May when applications opened for SEISS grants, a deadline for claims was not specified. However, the deadline of 13 July 2020, which was announced when the scheme was extended, is fast approaching and your claim for the first grant must be made by this date.
If you are eligible for the first Self-Employment Income Support (SEISS) grant you must make your claim by Monday 13 July.
Your business must have been adversely affected by coronavirus when claiming the grant. This means that, to claim the first grant, the business must have adversely affected on or before 13 July 2020 and to claim the second grant they must have been adversely affected after that date.
HMRC’s guidance on making a claim, says: “Do not make a claim based on an adverse effect you think may happen in the future.” It also reassuringly states: “If your business recovers after you’ve claimed, your eligibility will not be affected”.
The ICAEW’s Tax Faculty advises that businesses should judge their eligibility based on their circumstances in the period up to the date the claim is made and keep evidence to support that judgement.
The view that the first grant relates to March to May 2020, as mentioned in the original announcement by the Chancellor, has persisted although this aspect of the policy had been dropped by the time the direction was published on 30 April.
HMRC has confirmed to the ICAEW, that in relation to the periods covered by SEISS:
- The SEISS grants do not relate to any particular periods or seek to replace lost income over a particular period.
- SEISS is not intended to provide a month-by-month replacement of income.
- SEISS provides a lump sum payment to support eligible self-employed individuals whose businesses have been adversely affected by coronavirus. The sum is calculated by reference to three months’ average trading profits.
- Individuals can receive the full grant under the SEISS while continuing to work as long as their businesses have been adversely affected at the date of claim.
HMRC updated its SEISS guidance on 2 July 2020, expanding the guidance on adversely affected and the examples. The revised guidance provides further clarification on amended rules for new parents and reservists. It also explains that claims for the second grant will open from 17 August 2020 (probably on a staged basis) and close on 19 October 2020.
HB Accountants would like to thank the ICAEW for information used within this blog – the ICAEW’s blog piece can be found here
We are here for you during this difficult time. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above