Just as I sat down with a cup of tea for the first time in months, Rishi made another announcement! But this one is very much welcomed.
To give businesses certainty over the winter months, the support announced at the weekend has been extended and increased.
- The furlough scheme will now be extended until the end of March – with the government paying 80% of current salaries for hours not worked.
- The next self-employed income support grant (SEISS) covering November – January will also increase from 55% to 80% of average profits – up to £7,500.
Rishi Sunak said:
I’ve always said I would do whatever it takes to protect jobs and livelihoods across the UK – and that has meant adapting our support as the path of the virus has changed.
It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support.
Extending furlough and increasing our support for the self-employed will protect millions of jobs and give people an
Furlough claims should be able to be made by the end of November. Claims for the 3 month SEISS grant should open at around the same time.
A further SEISS 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 people who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter.
The eligibility criteria for this increased grants has not changed.
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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