Support For Self-employed Has Been Extended

UPDATED 6th November

The third self-employed grant will now be worth 80% of average trading profits, up to £7,500. This covers the period from November 2020 to January 2021. See our latest blog post on the SEISS here…

UPDATED 3rd NOVEMBER

The Government has announced more support will be available for the self-employed in the form of two grants, each available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.

HMRC said that applications for the grant can be made online from the 30th of November 2020, however full details on the process will be published in due course.

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 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

What the Grant Extension covers

The extension 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 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, and capped at £5,160 in total.

The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme in November due to its extension. And then the Job Support scheme in December and January.

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.

See current guidance on Gov.uk

For related articles head over to our coronavirus and business page for the latest news, guidance and information. 

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