Self-Employment Income Support Scheme Grant Extension
Update: Since this article was published the Chancellor, Rishi Sunak, announced an increase to 80% of average trading profits, up to £7,500 for the grant covering November to January. You can read more here.
Further details have been released on the extension of the Self-Employed Income Support Scheme (SEISS) which was mentioned in the Winter Economy Plan.
Like the original SEISS grant process, which closed for applications on 19 October, the extension will form two grants each covering a three month period, November 2020 to January 2021 and February 2021 to April 2021.
Only those who were previously eligible for the first and second SEISS grant, even if they haven’t claimed those grants, will be eligible for the extension.
Following the recent changes to the furlough scheme, the UK Government have increased the SEISS grant to cover 80% of average trading profits for November, then 40% for December and January. This increases the level of support for self employed individuals to 55% of average trading profits, capped at £5,160 in total for those months. The level of the fourth grant will be set at a later date. Both grants are taxable income and subject to National Insurance contributions.
The online service for the next grant has been brought forward from 14 December to Monday 30 November to ensure those who need the support get it as soon as possible. HMRC will provide full details about the claiming and application process in due course. You can read more about the SEISS extension here.
If you would like to discuss your circumstances, or would like advice on your situation, please get in touch with your usual Taxpert or call one of our offices.