Self-Employment Income Support Scheme Grant Extension

Self-Employment Income Support Scheme Grant Extension

Updated 5th November 2020

The Self-Employment Income Support Scheme Grant Extension provides financial support to the self-employed in the form of two grants, each available for three month periods covering 1 November 2020 to 31 January 2021 and 1 February 2021 to 30 April 2021.

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 grants (although a claim does not need to have been made for the previous grants) 
  • declare that they intend to continue to trade and either:
    • are actively trading but are faced with reduced demand due to coronavirus
    • were previously trading but are temporarily unable to do so due to coronavirus   

What the Grant Extension covers

The SEISS grant extension will last for six months, for the period from 1 November 2020 to 30 April 2021. The grants will be paid out as two lump sums, with each payment covering a three month period.

The third grant will cover a three month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.

The fourth grant will cover a three month period from 1 February 2021 until 30 April 2021. The Government will review the level of the fourth grant and will set out further details 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 30 November 2020. HMRC will provide further guidance in due course.

If you require any further information. Please get in touch with your usual Ward Williams contact.

About the author

Simon is the Tax Director at Ward Williams and has more than 20 years of practical experience working in the tax profession.

 

Specialising in personal tax, Simon qualified as a Tax Technician in 2007, having been awarded with the Ivison medal for attaining the highest mark in the Personal Taxation paper in 2006.

 

As department head, Simon oversees the tax team across the Ward Williams group, whilst managing a diverse portfolio of clients including high net worth individuals, doctors, directors of owner managed businesses, partnerships and sole traders.

simon.boxall@wardwilliams.co.uk

01895 236335