Important Update: For The Self Employed
Get ready for …
“The Self-Employment Income Support Scheme Grant Extension”
This is a NEW scheme and provides critical support to the self-employed in the form of two grants, each available for three month periods covering
1st November 2020 to 31st January 2021 and
1st February 2021 to 30th April 2021.
Who is eligible for the grant?
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 are the details of the Grant Extension?
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.
Please note that these grants are taxable income and also subject to National Insurance contributions.
The First Grant (Technically Third ‘Overall’ Grant)
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 80% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £7,500 in total.
They state that ‘….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 (Technically Fourth ‘Overall’ Grant)
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. So no details on this are available yet.
How Do I claim?
The online service for the next grant will be available from 30th November 2020. I suspect therefore that payments will be made soon after this date.
Once the HMRC releases the full details about claiming I will let you know.