Self Employed Income Support Scheme Grant Extension

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Self Employed Income Support Scheme Grant Extension

Chancellor Rishi Sunak has now doubled the amount of support eligible claimants can expect to receive from the next grant under the Self-Employment Income Support Scheme (SEISS). The Government have already paid two SEISS grants, but the Chancellor recently announced the scheme will be extended to provide two further grants for people who are eligible to claim. The grants will cover the six-month period between November 2020 and April 2021.

Who can claim

To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:

What the grant extension covers

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 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 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 to claim

The online service for the next grant will be available from 14 December 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.

If you would like any further information on this scheme, please get in touch with your contact at Lancaster Haskins.

LH Team