The government’s Self Employment Income Support Scheme (SEISS) has been extended for a further 6 months from 1 November 2020, making grants available to self employed people as outlined below.
Summary of the SEISS grant amounts
The first grant covered the 3-month period May to July 2020. It represented 80% of average monthly trading profits and was capped at £2,500 per month or £7,500 total.
The second grant was for the period August to October 2020 and was 70% of average monthly trading profits over 3 months, capped at £6,570.
The third grant covers the period from November 2020 to January 2021. This time, eligible self employed people can once again get a grant calculated at 80% of their average trading profits, capped at £7,500.
Applicants have been able to claim for this grant from 30 November 2020, under guidance provided by HMRC.
The fourth grant will be for the period from February to April 2021. Further details about the amount of the grant had yet to be announced at the time of writing.
More details about the grants
- Each of these payments is a single instalment covering 3 months’ worth of your average monthly trading profits and based on average income over the last three years.
- Each grant is subject to tax and National Insurance contributions.
- You can claim these grants and continue to do business.
Who can get an SEISS grant?
- The Scheme is only open to people with trading profits of up to £50,000 (which covers 95% of self-employed people). Self employed people who earn more do not qualify.
- Only people who make the majority of their income from self employment are eligible. So if you are employed but have a ‘side job’ which is self employed, you are not eligible.
- It’s only for those who have submitted a tax return for 2019 (to minimise fraud).
- The scheme is open to people from across UK.
- In the extended scheme, you need to have been eligible for the 1st and 2nd grants, but you don’t need to have claimed them in order to be eligible for the 3rd grant.
- You have to confirm that your business has been affected by the virus on or after the dates given by the government for each grant.
- You have to make a declaration saying that you intend to continue trading and that you are either:
- currently actively trading but are adversely affected by reduced demand because of coronavirus OR
- previously trading but can’t do so temporarily because of Covid-19.
For a payment mechanism, HMRC will pay the grant straight into the bank account of eligible self employed people, after asking them to fill in an online form.