According to the announcement of 22 October, the Government of the United Kingdom recognises the persisting impact that coronavirus (COVID-19) has had on the self-employed and has taken necessary action to provide support through continuing to provide the Self-Employment Income Support Scheme (SEISS) Grant. 

Quick Recap

Grant 1 The Self-Employment Income Support Scheme initially started paying out a taxable grant worth 80% of your average monthly trading profits, capped at £2,500 per month or £7,500 in total, paid out in a single instalment covering 3 months’ worth of profits.

-March 2020

-April 2020 

-May 2020

Grant 2 The second grant of the SEISS allowed you to claim an additional grant in August (If your business had been adversely affected on or after 14 July 2020), worth up to 70% of your average monthly trading profits, capped at £2,190 per month or up to £6,570 overall. The grant was also paid out in a single instalment covering 3 months’ worth of profits.

-August 2020

-September 2020

-October 2020

SEISS Grant Extension 

The Self-Employment Income Support Scheme (SEISS) Grant Extension will continue to provide critical support to the self-employed over the UK in the form of two additional grants, each available for three month periods covering, 

Grant 3: (3 months)

-November 2020 

-December 2020

-January 2021 

Grant 4: (3 months)

-February 2021 

-March 2021

-April 2021.

Who Can Claim

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

1. have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although you do not have to have claimed the previous grants)

2.declare that you 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. 

Check our previous blog’s eligibility section to learn more or contact London accountants for guidance. 

What the Grant Extension Covers

The extension will last for 6 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 (Grant 3) 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, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total. This is an estimated £7.3bn of extra support to the self-employed. 

The second grant (Grant 4) 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 soon publish the amount of payments.

The grants are taxable income and also subject to National Insurance (NI) contributions.

Note: The Government is providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.

How to claim

The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

Contact Taj Accountants

We are here to help you in explaining the schemes and ensuring you have the proper guidelines for the schemes. At Taj Accountants we aim to be your reliable source of solution for accounting and taxation problems where we offer a wide range of accountancy services along with tax services and advice, accounting services, payroll, tax return throughout London.

Relevant Links: 

   1. SEISS First Announcement: https://www.tajaccountants.co.uk/blog/self-employment-income-support-scheme--seiss--application-guidance

   2. SEISS July Update: https://www.tajaccountants.co.uk/blog/update-self-employment-income-support-scheme

DISCLAIMER: The purpose of the blog is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Taj Accountants for further assistance.