Covid 19 – More Help for the Self Employed

The Chancellor Rishi Sunak has introduced an extension to the Self-Employment Support Scheme (SEISS) to help lessen the impact that coronavirus (COVID-19) has had on the army of the self-employed throughout the UK. The recently announced grant extension will provide much needed support to the self-employed in the form of 2 further grants.
Each of these will be available for these three month periods:

November 2020 to January 2021 and February 2021 to April 2021.

Who Can Claim?

To be eligible for these grant extensions as a self-employed individual you must:

  • Have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although you do not have to have claimed the previous grants)
  • Declare that you intend to continue to trade and either:
  • You are currently actively trading but are impacted by reduced demand due to coronavirus, were previously trading but are temporarily unable to do so due to coronavirus

What does the grant extension cover?

The extension will last for six months, from November 2020 to April 2021. The SEISS grants will be paid in two lump sum instalments each covering a three month period. The third grant will cover a three month period from 1 November 2020 until 31 January 2021.

The Government will provide a taxable grant calculated at 80% of three months average monthly trading profits, paid out in a single instalment and
capped at £7,500 in total. This is an increase from the previously announced amount of 55%. It appears this has increased as the Chancellor was under increased pressure to offer parity for the self-employed compared to the Furlough scheme for employees

The Government are providing the same level of support for the self-employed as is being provided for employees through the
Coronavirus Job Retention Scheme which has also been extended until March 2021.

The Government has already announced that there will be a fourth grant covering February 2021 to April 2021.
The Government will set out further details, including the level, of the fourth grant in due course.

Please note that all of these grants are taxable income, and also subject to National Insurance contributions.

How to claim

The online service for the next grant will be available from 30 November 2020. If you have claimed for the previous two grants HMRC will notify you via email as the the exact date you can claim. Check your inbox !
HMRC will also provide full details about claiming and applications in guidance on GOV.UK in due course

If you need help with this, or indeed any of the Covid 19 Government Support Schemes, we are here to help you so get in touch by calling us on 0203 755 2863 or you can GET IN TOUCH HERE