Yesterday, Chancellor Jeremy Hunt presented his second Autumn Statement, but with a very different tone to the gloomy announcements made this time last year. The Chancellor announced initiatives with a massive focus on pushing growth in the economy. The main question you’ll all no doubt have is… “how does it affect me?”, let’s take a look…
Extension to the Self-Employment Income Support Scheme (SEISS) Grant
2 November 2020
Gavin Hooker
COVID-19, People, Raising Finance
In the Chancellor’s Winter Economy plan, he announced that the Self-Employment Income Support Scheme (SEISS) grant would be extended and HM Treasury has now issued a fact sheet explaining what is covered by the grant, who is eligible and how to claim.
The SEISS Grant Extension provides support to the self-employed. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.
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 does the Grant Extension cover?
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 Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
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.
How much can be claimed?
The SEISS grant uses the average trading profits based on the tax years 2016/17, 2017/18 and 2018/19.
HMRC will do all the calculations needed for the claims, using the information in the submitted tax returns. The taxpayer will not have to provide any figures but will need to make the application for the claim.
Summary of SEISS grants
| Grant Number | Percentage of average monthly profits | Maximum per month | Maximum grant | Deadline for applications |
|---|---|---|---|---|
| 1 | 80% | £2,500 | £7,500 | 13 July 2020 |
| 2 | 70% | £2,190 | £6,570 | 19 October 2020 |
| 3 | 55% | £1,720 | £5,160 | TBC |
| 4 | ? | ? | ? | TBC |
How to claim
The online service for the next grant will be available from the end of November. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
We are here to support your business, if you have any concerns please call us or email Mark or Andrew.
The content in this blog is correct as at 02/11/2020. See terms and conditions.
