In yet another change of policy the Government has announced the SEISS grant extension in the form of two further grants, each available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
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
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 third grant will cover a three-month period from November1, 2020 until January 31, 2021.
The Government will provide a taxable grant calculated at 80% of three 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 Government are providing the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme which has also been extended until March 2021.
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021.
They will set out further details, including the level, of the fourth grant in due course.
The grants are taxable income and also subject to National Insurance contributions.
If you require any further infromation on this matter please contact our tax manager Nick Charnley on 01244 343504.