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When the country went into lockdown, many businesses were forced to furlough their full-time staff. However, millions of self-employed people, who make up 15% of the UK’s workforce, also found themselves out of, or unable, to work. As they were ineligible for furlough, they were given a financial lifeline through the Government’s Self Employment Income Support Scheme (SEISS).
The first grant launched in March and individuals could apply for it until July 23. It saw £7.8bn in taxable grants claimed by 2.7 million people. Now the second and final grant has become available, so here’s everything you need to know.
What is the self-employed grant and when can I claim it?
Chancellor Rishi Sunak announced on July 14 that he would be extending the ‘lifeline’ so that self-employed people could claim a grant from August onwards.
Those eligible will now be able to claim the second and final grant worth 70% of their average monthly trading profits – up to a maximum of £6,570.
Applications, which can only be made by the claimant are open until October 19, with the money paid into your bank account within six working days of completing a successful claim. More information on how the grant works can be found here.
Who is eligible for the self-employed grant?
You can apply for a grant if you are a self-employed individual or member of a partnership. Those who have submitted their self-assessment tax return for the tax year 2018-19, have done self-employed work in the tax year 2019-20, or planning to do self-employed work in the tax year 2020-21 are eligible.
Those operating as limited companies, PAYE freelancers, or those in a trust fall through the cracks and are not able to apply for the government scheme.
The eligibility criteria remain the same as for the first grant, with people needing to confirm their business has been adversely affected by coronavirus. At least half of your income needs to have come from self-employment, and you can have average trading profits of no more than £50,000.
Those eligible will need to apply via the official government claims portal with your self-assessment unique taxpayer reference, national insurance number, and a Government Gateway user ID and password – if you don’t have one, you can create one when you make your claim. You’ll also need your UK bank account details including the address linked to your account.
Crucially, you must personally apply, because fraud alerts could be triggered if a third party such as an accountant or a financial advisor claims on your behalf.
How much money will you receive?
Those eligible for the scheme will get a taxable grant which will be 70% of the average monthly profits from the tax years (where applicable) 2016 to 2017, 2017 to 2018, and 2018 to 2019. To work out the average, HMRC will add together the total trading profit for the three tax years then divide by three and use this to calculate a monthly amount.
The grant will be up to a maximum of £6,570 in total and will be paid directly into your bank account, in one instalment.
How do you apply?
Applications for the second and final grants are now open. If you are eligible and your business has been adversely affected on or after July 14, you can make your claim for the second grant on or before October 19. You can claim a grant through the SEISS here.