On 17 August the second phase of the Self Employed Income Support Scheme will go live. This second phase will allow those who are self employed and remain adversely affected by the COVID-19 pandemic on or after 14th July to submit a claim for a second support grant. This grant will be calculated based upon 70% of average annual profits over the three tax years ending 5 April 2019, restricted to a maximum of £2,190 per month. As before, the grant will be paid in respect of a three month period in one lump sum.
You will notice the emphasis on adversely affected, this is a highly subjective term with no strict definition so we would recommend that you consider the updated guidance on HMRC’s website to determine whether you qualify for the second phase. While for some clients this test will be a fairly obviously pass, others are likely to be less clear cut. If you consider that you qualify for the grant support we would strongly recommend that you make a record of the basis for your decision at the time of the claim as HMRC are likely to ramp up their compliance activities in this area over the next couple of years to ensure that claims received were in fact appropriate.
Please note that it is not necessary to have made a claim under the first phase to be eligible for the second phase grant although a claim under the first phase doesn’t automatically mean that you qualify for the second phase.
The deadline for making a claim under the second phase of the scheme is 19th October 2020.