Self-Employed Income Support Scheme extended
The Self-Employed Income Support Scheme (SEISS) is being extended to provide financial support to businesses over the winter.
However, with the further announcements on 31 October of an extension to the furlough scheme with the government paying 80% of wages, it is likely that Self Employed Income Support Scheme may also be further improved.
On Monday 2nd November 2020, Chancellor Rishi Sunak announced further support through the SEISS to bring the amount received by self-employed individuals in line with employed people claiming through the CJRS.
The scheme
The extension will last for 6 months, between November 2020 until April 2021. The grants will be paid in two lump sum instalments each covering a 3 month period.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 80% of average monthly trading profits for November and 40% of average monthly trading profits for December and January. This increases the total level of the grant to 55% of trading profits over the first three-month period.
The grant is paid out in a single instalment covering 3 months’ worth of profits and capped at £5,160 in total.
Claims can be made for the first grant via the government portal from 30th November 2020.
The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.
Please note: The grants are taxable income and also subject to National Insurance contributions.
Who Can Claim
To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria:
- Currently be eligible for the existing SEISS (although they do not have to have claimed the previous grants)
- Declare that they are currently actively trading and intend to continue to trade
- Declare that they are impacted by reduced demand due to COVID-19 in the qualifying period.
How To Claim
The online service for the next grant will be available from 30th November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
