Increased SEISS Scheme Nov 2020 – Jan 2021
The government have released revised plans for the Self Employed SEISS payment extension. 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. As Furlough has been extended at a higher level due to lockdown, they have also decided to increase the next SEISS payment
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, followed by 40% of average profits for December and January. This will be paid out in a single instalment covering 3 months’ worth of profits, claimable from 30th November.
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 changes will ensure that self-employed individuals who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter, with roughly the same support as those on furlough.
Further Information
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 grants are taxable income and also subject to National Insurance contributions.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course. The latest information from them is available here.
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