Self-Employment Income Support Scheme Grant Extension
Due to the ongoing impact that Covid-19 has had on the self-employed the UK government has taken action to provide support. The Self-Employment Income Support Scheme (SEISS) Grant Extension will provide critical support to the self-employed in the form of two grants, which will both be available for 2 three month periods, the first covering November 2020 to January 2021 and the second covering February 2021 to April 2021.
Who can claim?
To be eligible for the extension self-employed individuals, including members of partnerships, must:
- have previously been eligible for the SEISS first and second grant (but don’t have to have claimed the previous grant)
- declare they intend to continue trade and either:
- are currently trading but are impacted by reduced demand due to Covid-19
- were previously trading but temporarily unable to do so due to Covid-19
What does it cover?
This extension lasts for six months, November 2020 to April 2021. The grants will be paid in two lump sums each covering a three-month period. The first grant covers the period from 1 November 2020 until 31 January 2021. The government will provide a taxable grant covering 40% of average monthly trading profits, paid in a single instalment covering three months’ worth of profits, but capped at £3,750 in total.
The government are providing the same level of support for the self-employed as is being provided for employees through the Job Support Scheme.
The second grant covers the 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. Both grants are taxable income and are subject to National Insurance contributions.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course. Please see the SEISS page for latest updates.