Last updated: 5 November 2020
The Government is increasing its support to the self-employed over the winter months and making payments sooner than previously planned.
Chancellor Rishi Sunak announced the changes on 2 and 5 November 2020, ahead of further coronavirus lockdown measures. The Coronavirus Job Retention Scheme (CJRS) has also been extended to Spring 2021.
To mirror the recent extension of the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous.
Payments will also be made more quickly, with the claims window being brought forward from 14 December to 30 November.
The changes are intended to support self-employed individuals who temporarily cannot carry out their business or suffer reduced demand due to the outbreak.
How much will the grants be worth?
SEISS grants are calculated over three months. The third grant will cover a 3 month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total (please note that this is an increase from the previously announced amount of 55%).
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. The Government will set out further details, including the level, of the fourth grant in due course.
The grants are taxable income and also subject to National Insurance contributions.
Who is eligible for the SEISS grant extension?
To be eligible for the Grant Extension, self-employed individuals (including members of partnerships), must:
The online service for the next grant will be available from 30 November 2020. For more information, visit GOV.uk.
If you are looking for further advice on accessing the self-employment grants, please get in touch with Matthew Spencer email@example.com or your usual Lubbock Fine contact.