Extension to the Self-Employment Income Support Grant

Extension to the Self-Employment Income Support Grant

The UK Government recognises the continued impact that the coronavirus (COVID-19) has had on the self-employed, so will be providing extended support through until April 2021. The Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed people receiving 80 per cent of their average trading profits for November.

The Self-Employment Income Support Scheme (SEISS) grant has been extended to provide critical support to the self-employed. This will be in the form of 2 further grants, each available for 3 month periods covering November 2020 to January 2021 and February 2021 to April 2021. To ensure those who need support get it as soon as possible, payments will be made more quickly with the claims window being brought forward from December 14 to November 30.

To be eligible the following must apply:

you traded in the tax year April 2018 to April 2019 and submitted your Self-Assessment tax return on or before 23 April 2020 for that year.
you traded in the tax year April 2019 to April 2020.
you intend to continue trading in the tax year April 2020 to April 2021.

Who can Claim from the Extended Income Support Scheme?

If you’re self-employed or a member of a partnership and have been adversely affected by coronavirus (COVID-19), you may be eligible to claim a grant under the extended scheme. Claims for the first 2 grants that the Government previously offered to the self-employed are now closed.

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:
1. are currently actively trading but are impacted by reduced demand due to coronavirus.
2. were previously trading but are temporarily unable to do so due to coronavirus.

How the 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.

What the Grant Extension Covers

The extension will last for 6 months, from November 2020 through to the end of April 2021. Grants will be paid in 2 lump sum instalments each covering a 3 month period.

This third grant will cover a 3 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 Government is 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 will set out further details, including the level, of the grant in due course. The grants are taxable income and also subject to National Insurance contributions.

How to Claim

Details of the HMRC online service for the extended grant will be available from 30 November 2020.

Extension to the Self-Employment Income Support Grant