Self Employment Income Support Scheme Extended
WHAT IS THE SCHEME?
The Chancellor recognises the continued impact that COVID-19 has had on the self- employed and has taken action to provide support.
The SEISS Grant Extension provides critical support to the self-employed. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.
WHO IS ELIGIBLE?
To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria:
- Currently be eligible for the SEISS (although you do not have to have claimed the previous grants)
- Declare that you are currently actively trading and intend to continue to trade
- Declare that you are impacted by reduced demand due to COVID-19 in the qualifying period. The qualifying period for the first grant is between 1 November and the date of claim
WHAT DOES THE GRANT COVER?
The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three- month period.
The first grant will cover a three-month period from the start of November until the end of January. The Government will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from the start of February until the end of April. The Government will review the level of the second grant and set this in due course.
The grants are subject to Income Tax and National Insurance Contributions.
HOW CAN I CLAIM?
HMRC will provide full details about claiming and applications in guidance on gov.uk in due course.