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New parents entitled to the Self-Employment Income Support Scheme

 

The second Self-employment Income Support Scheme became available on 17 August and Self-employed new parents may be eligible to make a claim.

If having a new baby (or adopting a child) has had an adverse impact on your income because you took a break from trading to care for your new child within 12 months of birth/adoption and you meet the eligibility criteria, you should consider a claim. You may be able to make a claim if having a new child either:

  • affected the trading profits or total income you reported for the tax year 2018 to 2019
  • meant you did not submit a Self Assessment tax return for the tax year 2018 to 2019. There’s more information  for new parents, including an online form on GOV.UK.

HMRC should have written to Customers and given them a date to make a new claim. You can claim any time between your allocated date and 19‌‌ October 2020. You can apply this time even if you did not apply for a grant the first time. Successful applicants should receive payment within 6 weeks.

The second taxable grant is worth 70% of average monthly trading profits, a reduction from the 80% available under the first grant. This will be paid out in a single instalment and will be based on three months’ worth of trading profits and capped at a maximum of £6,570.

The eligibility criteria for the second grant is exactly the same as the first grant – so self-employed people who were eligible for the first SEISS grant will be eligible for the second grant, so long as your business has been adversely affected since 14‌‌ July 2020.  This typically means that your business has experienced lower income and / or higher costs because of coronavirus (COVID-19) since 14‌‌ July. There is no minimum threshold over which a business’s income, costs or activity need to have changed by. Please note that you will be asked to keep appropriate records as evidence of how your business has been adversely affected.

HMRC have advised us that we can not make the claim on your behalf but we are here to help you understand if you may be eligible and your level of entitlement. If you need help claiming for the second, or even both, SEISS grant please call us 01242 776000 and one of our tax advisors can assist you.

 

 

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