HMRC has published examples of what constitutes ‘adversely affected’ by coronavirus to assist with determining whether a business is eligible to make a claim under either of the Self-employed Income Support Scheme (SEISS) grants.
This updated guidance re-confirms what can be claimed if the eligibility criteria are met: ’A taxable grant worth 80% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.’ A claim for this first grant must be made on or before 13 July 2020.
In an extension to the scheme, a second and final grant can be claimed in August 2020. Eligibility is calculated in the same way as for the first grant, but the business must confirm that it has been adversely affected on or after 14 July 2020. HMRC advises that ‘This grant will be a taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering a further 3 months’ worth of profits, and capped at £6,570 in total.’ A claim can be made for the second grant even if one was not made for the first grant.
HMRC has provided a range of scenarios to help identify whether a business can claim either or both grants. Included among these is the following example:
A builder worked on short-term contracts on various building sites. She only had half the work she would normally have between March to May because some of her building sites were closed. She was able to work as normal from June because her building sites reopened.
Was this business adversely affected for the first grant? Yes
Was this business adversely affected for the second grant? No
Result: The builder would be able to claim only under the first grant.
The full guidance from HMRC can be read here.
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