Changes to Self Employed Grant

Table of Contents

Introduction

The grant has now changed following todays (22nd October 2020) announcement – here’s how it will affect you

  • Grants for the self-employed doubled to 40% of previous earnings
  • The maximum grant will increase from£1,875 to £3,750.

Today’s announcement means self-employed workers could be receiving a grant up to double the amount previously announced by the government, with a further grant to follow covering February to April.

The SEISS – overview

The deadline for making a claim under the second round of the Self-Employment Income Support Scheme was October 19, 2020.

The scheme was extended further as part of the Winter Jobs Package, with the extension period to start in November 2020 and last six months. It’ll be paid in the form of two taxable grants – the first will cover from the start of November to the end of January, and the second February until the end of April.

Under the initial extension to the Self­ employment Income Support Scheme (SEISS), chancellor Rishi Sunak said the lump sum will cover three-months’ worth of profits (November to January) up to a total of £1,875.

But todays announcement essentially doubles the amount of profits which will be covered under the scheme, from 20% to 40%.

Sunak said this is a potential further £3.1bn of support to the self-employed through November to January alone, with a further grant to follow covering February to April.

The subsequent grants will only be available to those who have previously made use of the scheme.

What the scheme looks like now

The grants will now be worth 40%, up to £3,750. Crucially the Government says applicants must now declare they’ve been impacted by reduced demand due to coronavirus, whereas with previous grants you’ve been able to claim if you’ve suffered any adverse impact.

  • The government will provide two taxable SEISS grants to support those experiencing reduced demand due to COVID-19 but are continuing to trade, or temporarily cannot trade.
  • It will be available to anyone who was previously eligible for the SEISS grant one and grant two, and meets the eligibility criteria.
  • Grants will be paid in two lump sum instalments each covering 3 months. The first grant will cover a three-month period from the start of November 2020 until the end of January 2021′.
  • The government will pay a taxable grant which is calculated based on 40% of three months’ average trading profits, paid out in a single instalment and capped at £3,750.
  • The second grant will cover a three-month period from the start of February until the end of April 2021. The government will review the level of the second grant and set this in due course.
Changes to Self Employed grant
Changes to Self Employed grant

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

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