Self-Employment Income Support Scheme

SEISS Self Employed Grant Scheme Extension

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What is the scheme?

The Chancellor announced that in-line with the next phase of support for employees, the Government would also be extending the Self-Employment Income Support Scheme (SEISS). The final phase of this grant scheme will be limited to self-employed individuals who are currently eligible for the current SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.

This next phase of grant payments will come in the form of two lump sums paid at 3 month intervals. Whilst the maximum allocation for the first grant has been confirmed as £1,875, the terms for the second grant will be revealed in due course.

Who is eligible?

To be eligible for the scheme, self-employed individuals, including members of partnerships, must meet the following criteria:

  • Currently be eligible for the SEISS (although you do not have to have claimed the previous grants) See our recent article here
  • Declare that you are currently actively trading and intend to continue to trade
  • Declare that you are impacted by reduced demand due to COVID-19 in the qualifying period. The qualifying period for the first grant is between 1 November and the date of claim

Previous eligibility criteria and examples of businesses ‘adversely affected’ by coronavirus included the following and it is suggested this will remain the same for now:

  • you're unable to work because you:
  • are shielding
  • are self-isolating
  • are on sick leave because of coronavirus
  • have caring responsibilities because of coronavirus
  • you've had to scale down or temporarily stop trading because:
  • your supply chain has been interrupted
  • you have fewer or no customers or clients
  • your staff are unable to come in to work

What does the grant cover?

  • The extension will provide two grants and 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 the start of November until the end of January. The Government will provide a taxable grant covering 20% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.
  • The second grant will cover a three-month period from the start of February until the end of April. The Government will review the level of the second grant and set these in due course.
  • The grants are subject to Income tax and National Insurance Contributions.
  • How can I claim?
  • HMRC will provide full details about claiming and applications in guidance on gov.uk in due course.

Don’t forget, the deadline for the second Self-Employment Income Support Scheme (SEISS) grant is 19th October and HMRC believe that 1.4million eligible businesses have not yet claimed. For more information about how to apply click here.


For more information on the SEISS scheme and your eligibility, please get in touch with David Cousins on 07584294578 or email david.cousins@armstrongwatson.co.uk

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