There has been some good news for the self-employed. If you are eligible for the Self Employed Income Support Scheme and managed to successfully apply for the first payment, you’ll be able to apply for a second payment too. According to Money Saving Expert’s Martin Lewis, it was 50/50 on another payment being offered and it seemed less and less likely as the days went on. Eventually though, Chancellor of the Exchequer Rishi Sunak announced that there will be a second payment covering June, July and August.
The Chancellor also made it firm that this would be the second and last payment of the SEISS. The first payment was 80% of your monthly income based on your previous tax returns. The second payment will drop to 70%, up to £6,570, making it in line with the reduction happening in the furlough scheme. Lots of people have lost work because of the global pandemic and this is a way that the self-employed as seeing themselves valued. Of course, there have been people who have fallen through the gaps. The only real options for them are Universal Credit or the Bounce Back Loan Scheme. As the economy starts to get back on its feet and we look to the future, this second payment should hopefully set people up to move forward and continue trading as self-employed.
It’s worth noting that the SEISS payments are all taxable. This means that you’ll need to declare it on the next self-assessment tax return. With that it mind, when you apply for the second payment in August and it drops into your bank a few days later, it might be worth putting 20% into a different bank account to cover the tax that you’ll need to pay.
This has been a worrying time financially for many people and lots of people are feeling fortunate to have a little bit of support. If you need any help with your bookkeeping our accounts, please don’t hesitate to get in touch.
