The first round is now closed to applicants and round two will open on Monday 17th August.
If you were eligible for the first grant and can confirm to HMRC that your business has been adversely affected on or after 14 July 2020, you’ll be able to make a claim for a second and final grant from 17 August 2020.
The scheme allows you to claim a second and final taxable grant worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.
As with the first grant HMRC will contact you if you’re eligible and will work out your eligibility for the second grant in the same way as the first grant.
You can make a claim for the second grant if you’re eligible, even if you did not make a claim for the first grant.
If you receive the grant you can continue to work, start a new trade or take on other employment including voluntary work, or duties as a military reservist.
The grant does not need to be repaid but will be subject to Income Tax and self-employed National Insurance.
Who can claim
You can claim if you’re a self-employed individual or a member of a partnership and your business has been adversely affected on or after 14 July 2020.
Your business could be adversely affected by coronavirus if, for example:
- you’re unable to work because you:
- are shielding
- are self-isolating
- are on sick leave because of coronavirus
- have caring responsibilities because of coronavirus
- you’ve had to scale down, temporarily stop trading or incurred additional costs because:
- your supply chain has been interrupted
- you have fewer or no customers or clients
- your staff are unable to come in to work
- one or more of your contracts have been cancelled
- you had to buy protective equipment so you could trade following social distancing rules
You must keep evidence to confirm your business was adversely affected at the time you made your claim.
All of the following must also apply:
- you traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year
- you traded in the tax year 2019 to 2020
- you intend to continue to trade in the tax year 2020 to 2021
- you carry on a trade which has been adversely affected by coronavirus
You must make the claim yourself. Your tax agent or adviser must not claim on your behalf as this will trigger a fraud alert, and you will have to contact HMRC. This will cause a significant delay to you receiving your payment.
If you want to claim the second and final grant you must make your claim on or before 19 October 2020.
How to claim
To claim you’ll need your:
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim
- UK bank details (only provide bank account details where a Bacs payment can be accepted) including:
- bank account number
- sort code
- name on the account
- your address linked to your bank account
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus on or after 14 July 2020.
How much you’ll get
You’ll get a taxable grant based on your average trading profit over the 3 tax years:
- 2016 to 2017
- 2017 to 2018
- 2018 to 2019
We will work out your average trading profit by adding together your total trading profits or losses for the 3 tax years, then we will divide by 3.
The second and final grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total. The online service will tell you how we’ve worked your grant out.
The grant amount we work out for you will be paid directly into your bank account, in one instalment.