The Self-Employment Income Support Scheme Grant Extension provides financial support to the self-employed in the form of two grants, each available for three month periods covering 1 November 2020 to 31 January 2021 and 1 February 2021 to 30 April 2021.
Who can claim
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 grants (although a claim does not need to have been made for the previous grants)
- declare that they intend to continue to trade and either:
- are actively trading but are faced with reduced demand due to coronavirus
- were previously trading but are temporarily unable to do so due to coronavirus
What the Grant Extension covers
The SEISS grant extension will last for six months, for the period from 1 November 2020 to 30 April 2021. The grants will be paid out as two lump sums, with each payment covering a three month period.
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 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for the month of November 2020. This increases the overall level of the grant for the 3 month period 1 November 2020 to 31 January 2021 from 40% to 55% of trading profits.
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.
How to claim
The online service for the next grant will be available from 30 November 2020. HMRC will provide further guidance in due course.
If you have any further questions. Please get in touch with a member of the WardWilliams Creative team.