From 17 August, 3.5m eligible self-employed people in the UK will be able to claim for the second grant under the Self-Employment Income Support Scheme (SEISS), which provides financial support during the coronavirus crisis.
The first grant payment was calculated on 80% of three months average profit (2017 – 2019). It was based on criteria that the individual’s business had to have been affected during the three months of March, April and May.
The second grant is payable if the business has been affected after the 14 July. Whilst the reduction in value in the second grant (70% of income vs 80% for the first grant) has been widely reported, the impact of the change in the way the grant is calculated has been ignored as not significant.
Tommy McNally of Tommys tax app (a free app that calculates tax and claims the refund on your behalf) said, “I’m alarmed that everyone appears to be dismissing the change as insignificant. This is rubbish, the calculation will have a huge impact on eligibility.
“The second grant is still very generous, as its only 10% less than the first grant and it’s still a payment for three months’ worth of income. However, the time period misses any impact in June and the first half of July. This will mean that some who were badly impacted in June and early July, but recovered by 14 July, won’t be eligible.”