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What does "Adversely Affected" mean?


HMRC directions for claiming the second SEISS grant state that a claim can only be made if your business "has been adversely affected due to coronaviruson or after 14 July 2020.


But what does "adversely affected" actually mean?


There is no legal definition, so we have to look at how those words would be commonly understood in everyday use, so "affected" means to be changed by something and "adversely" implies a negative change.


HMRC's website says "Adversely affected is typically when your business has experienced lower income or higher costs due to coronavirus"


HMRC have recently confirmed that there is no minimum threshold to which your business income or costs need to have changed, so even a small drop in sales or increase in costs will allow you to honestly assess that your business has been "adversely affected". And thus you will be able to put in a claim under the scheme, providing you meet all the other criteria.


You can find more details here Adversely Affected Examples


For further information on the Financial Help available if your business has been affected by Covid-19 please check out our Covid-19 Hub



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