Chancellor, Rishi Sunak, has confirmed he has extended the Self-Employed Income Support Scheme (SEISS) from 1 November 2020 to 30 April 2021.
The Self-Employment Income Support Scheme Grant Extension will provide support to 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.
And to ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from December 14 to November 30.
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 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 installment 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 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 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 full details about claiming and applications in guidance on GOV.UK in due course.