The application process for the second SEISS grant opened on 17 August. HMRC has been busy in recent weeks writing to self-employed people who may be eligible. As with the first grant, taxpayers have been given a date to make a claim. They can claim any time between their allocated date and 19‌‌ October 2020.

HMRC is also reaching out to newly eligible reservists to invite them to claim their grants if they meet the criteria for SEISS.

Self-employed parents whose income may have been affected if they took time out to have children are also able to claim if they meet the eligibility criteria. There’s more information for new parents, including an online form to provide evidence to support their claim.

In recent discussions with HMRC, we once again raised the issue of Northern Ireland ID verification issues and the inability of agents to make SEISS claims on behalf of clients. The rational for agents not being able to apply for the SEISS scheme on behalf of clients is that the SEISS scheme is short lived.

According to HMRC, their resources were better directed to enabling agents to make claims under the job retention scheme which runs for a longer period until 31 October 2020 and became much more complex with the introduction of flexible furloughing from 1 July.

However, as a result of our previous feedback, we understand the issue with Northern Ireland ID verification using a Northern Ireland driving licence to set up a Government Gateway ID has now been resolved. Should taxpayers still not be able to set up a Government Gateway ID they must apply for the SEISS by phone.

Agents who attempt to make a claim for a client will trigger a fraud alert which will lead to delays in payment. However, agents can play a critical role in helping their client understand their eligibility and level of entitlement.

The eligibility criteria for the second grant is exactly the same as the first grant – so self-employed people who were eligible for the first SEISS grant are eligible for the second grant, so long as their business has been adversely affected since 14‌‌ July 2020. This typically means that their business has experienced lower income and/or higher costs because of COVID-19 since 14‌‌ July.

According to HMRC, there is no minimum threshold over which a business’s income, costs or activity need to have changed by, but taxpayers must keep appropriate records as evidence of how their business has been adversely affected.

The second taxable grant is worth 70 percent of average monthly trading profits, a reduction from the 80 percent available under the first grant. This is being paid out in a single instalment and is based on three months’ trading profits capped at a maximum of £6,570. Once people have completed a claim, they can expect to receive payment within 6 working days.

You can read more about the extension to the scheme on GOV.UK. Members can visit our dedicated SEISS page, which provides guidance on the scheme and is regularly updated. Download our updated factsheet on the who, what, where, when, and why of the scheme.