The Self-Employment Income Support Scheme (SEISS) grant extension provides critical support to the self-employed. The grant is only for self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to Covid-19.
The extension will provide two grants and will last for six months from November 2020 to April 2021. Grants will be in two lump-sum instalments each covering a three-month period.
The scheme allowed you to claim a first taxable grant. Applications for the first grant closed on 13 July 2020.
The second taxable grant is worth 70% of your average monthly trading profits. Subsequently, the grant will pay out in a single instalment covering three months’ worth of profits with a maximum of £6,570 in total.
How the Self-Employment Income Support grant works
If you receive the grant you can:
- continue to work
- start a new trade or take on other employment including voluntary work and duties as a military reservist
The grant does not need to be repaid if you’re eligible, but will be subject to Income Tax and self-employed National Insurance.
HMRC will work out if you’re eligible and how much grant you may get. But you can follow these steps to help you understand how we will do this and what you can do now.
Who can claim
You can claim a grant if you’re a self-employed individual or a member of a partnership and if the coronavirus has adversely affected your business.
To make a claim for the second grant, the restrictions must have affected your business on or after 14th July 2020.
All of the following must also apply:
- your business traded in the tax year 2018 to 2019 and submitted your Self Assessment tax return on or before 23 April 2020 for that year;
- you traded in the tax year 2019 to 2020;
- your company intends to continue trading in the tax year 2020 to 2021.
For further information, please visit the gov.uk website.
We hope you found this article about the Self-Employment Income Support Scheme Grant Extension useful. For more of our articles informing you about business and general updates on Covid-19, please click here.