On 24 September 2020, the Chancellor Rishi Sunak confirmed that there would be an extension to the Self Employed Income Support Scheme (SEISS) with two further extensions.
Details of the third extension have been announced, however the full details of the fourth are due for confirmation in the coming months.
To be eligible for the scheme, self-employed individuals, must meet the following criteria:
- Currently be eligible for the SEISS (although they do not have to have claimed the previous grants)
- Declare that they are currently actively trading and intend to continue to trade
- Declare that they are impacted by reduced demand due to COVID-19 in thequalifying 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 do I claim?
HMRC will provide full details about claiming and applications in guidance on gov.uk in due course.
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