The government have released revised plans for the Self Employed SEISS payment extension that is to be made from November 2020. There will be two grants, for the 3 month periods covering Nov 2020 to Jan 2021 and then Feb 2021 to April 2021.
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.
To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- declare that they intend to continue to trade and either:
- 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
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 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
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.
The grants are taxable income and also subject to National Insurance contributions. When you will be able to claim the money has yet to be finalised.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
If anyone needs any advice on the SEISS grant, please contact us