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Second Coronavirus Grant For The Self-Employed Opens For Applications Tomorrow

Second Coronavirus Grant For The Self-Employed Opens For Applications Tomorrow

It is part of the government’s Self-Employment Income Support Scheme, which was designed to help support the self-employed community

From tomorrow (17 August), self-employed workers will be able to apply for a second coronavirus grant from the government, with up to £6,570 ($8,590) available for those affected by the pandemic.

It is part of the government's Self-Employment Income Support Scheme, which was designed to help support the self-employed community and is made up of two grants.

The first one closed on 13 July, but this second and final grant will be open for applications from 17 August, closing on 19 October this year.

The new grant will be worth up to 70 percent of your trading profits - down from 80 percent offered under the first self-employed income support scheme.

PA

The Money Saving Expert website explains: "It's capped at £2,190 a month and is taxable at a total of £6,570.

"As it's a grant, you don't need to pay it back."

To claim, you obviously need to be self-employed and to have been adversely affected by the coronavirus on or after 14 July 2020.

Explaining what it means to be 'adversely affected', MSE founder Martin Lewis said: "Can you put your hand on your heart and say your business has been negatively impacted by coronavirus, and you are in a worse position than you would've been if it hadn't happened?

"If the answer is yes, then in the vast majority of cases you should feel comfortable signing the declaration and getting the grant if you're eligible.

"HMRC is not looking to try to catch people out who are making honest declarations. So even if you're working all hours and bringing some money in, if your business isn't where it should be and coronavirus is to blame, then you're entitled to say yes to the grant.

"And the payment isn't structured to be proportionate to the impact, it's binary - if you're due money, you're due it all; if you're not, you're not due a penny."

PA

If you're unable to work because you're shielding, self-isolating, on sick leave because of coronavirus or because you have caring responsibilities due to coronavirus, HMRC has said these constitute being 'adversely affected', as would having to scale down or temporarily stop trading because of an interruption to supply chain, having fewer or no customers/clients or your staff being unable to come into work.

The published guidance explains: "The scheme allows you to claim a second and final taxable grant worth 70 percent of your average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and capped at £6,570 in total."

You're expected to keep hold of any evidence that might should how your business has been adversely affected, such as business accounts that highlight a reduction in turnover or confirmation of any coronavirus-related business loans you've received.

You don't need to have claimed the first grant to apply for the second, and likewise if you claimed the first time round you can still also apply for the second as long as you're eligible.

If you are eligible, once you've applied HMRC will contact you.

Find out more information via the government website here.

Featured Image Credit: PA

Topics: government, UK News, News, Money, Coronavirus