13 July 2020

SEISS second grant - circular email 13th July 2020

This email is aimed at people working on a Self-employed basis. To clarify, that does not include people working through a limited company who consider themselves to be self-employed but are technically directors/shareholders.

July tax payments for all taxpayers

However a comment on the Self-assessment statements sent to all taxpayers recently. The second instalment of tax for 2019/20 which is due 31st July can be deferred until 31st January 2021 and the HMRC computer has issued statements and payslips showing 31st January 2021 as the date payable. I understand this is to avoid the computer charging interest from 31st July, which has been waived, however it is causing some confusion. For the avoidance of doubt no tax is being reduced only an offer to defer payment by six months without incurring interest as would normally be the case and so it is acceptable to pay it now if you are in a position so to do.

SEISS (self-employed) grant

While I suspect every self-employed person who is eligible has claimed the SEISS grant please note today, 13th July, is the last date to make the first claim. Which means 14th July is the effective start date for the new grant. When considering a second claim please be aware of the prime condition that your business has been adversely affected on or after 14 July 2020.

You can claim for the second grant even if you did not make a claim for the first grant however the claim cannot be made until August 2020.

While many businesses are re-opening very many will be at a reduced levels of income and profitability and can undoubtedly show loss due to Covid after 14th July however bear in mind if you claim disregard what has happened previously. It is noticeable the government have introduced, at short notice, legislation allowing them to recover any falsely claimed grants under all the COVID schemes.

The government have summarised their interpretation under the section headed Adversely affected examples (two-thirds of the way down) at this link
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