Second Grant

Applications for the second grant will open on 17 August 2020 and close on 19 October 2020.

To be eligible, taxpayers must

  • Be unincorporated trader or partnership member and
  • Have submitted their self-assessment tax return for 2018-19 by 23 April 2020
  • Have trading profits of no more than £50,000 and
  • Have more than half their income as trading profits in 2018/19 or
  • Have more than half their income as trading profits on average for the years 2016-17 to 2018-19 and
  • Have been trading during 2019-20 and
  • Intend to continue to trade during 2020-21 and
  • Have a trade that has been adversely affected by Coronavirus after 13 July 2020.

There are a number of ways in which the trade can be adversely affected. This includes having less clients, being unable to work due to shielding/sickness, staff issues due to coronavirus etc.

The grant will be calculated by HMRC as 70% of 3 months’ trading profits (based on an average), and is capped at £6,570 in total.

The grant (as with the first grant) is subject to income tax and national insurance. The tax will be assessed via self-assessment for the 2020-21 tax year and therefore payable by 31 January 2022.

Taxpayers can continue to work and still receive the full grant unlike the furlough scheme for employees.

Agents cannot make a claim on behalf of taxpayers. The claim has to be submitted by taxpayers themselves by logging into their government gateway account.

As with the first grant, payments should be made within 6 days of the claim.

If a taxpayer does not have a government gateway account should set one up using the following link as this ensures they don’t have to wait for an authentication code to arrive in the post which could create a lengthy delay.