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The Government has announced changes to the extension of the Self Employment Income Support Scheme (SEISS) Grant. This broadly brings it in line with the updated Coronavirus Job Retention Scheme (furlough).

The grant extension is for individuals who are currently eligible for the self employment Income Support Scheme and are actively continuing to trade but are facing a reduced demand due to Coronavirus (Covid-19).

What is covered?

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 three months from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 55% of average monthly trading profits.  This will be paid out in a single instalment covering 3 months’ worth of profits and capped at £5,160 in total.

The previously announced level was 40% of trading profits for the first three month period. It is now 80% for November 2020 and then 40% for both December 2020 and January 2021. 

This gives the recalculated level of 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 also subject to National Insurance contributions.

Who Is eligible?

Self Employed Construction Worker

Self employed individuals and members of partnerships are eligible and must:

  • Have previously been eligible for the SEISS first and second grants (although they do not have to have claimed either)
  • Declare that they intend to continue to trade and either:
    • Are currently actively trading but are impacted by reduced demand due to Coronavirus, Or:
    • were previously trading but are temporarily unable to do so due to Coronavirus

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 on gov.uk in due course. We will of course keep you informed.

 

If you have any questions or need any advice, please get in touch.

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