The Chancellor has announced a corresponding increase in financial support for the self-employed to mirror the benefits of the extended furlough scheme.
For the period November 2020 to 31 January 2021, SEISS support will be 80% of average trading profits capped at £7,500.
The previous eligibility criteria will still apply.
Additionally, SEISS grants will be paid faster. The claims window will open at the end of November rather than the middle of December. This will provide much needed funds for the self-employed before Christmas.
There will be a further SEISS grant for the period 1 February 2021 to 30 April 2021. The amount for this period should be announced January 2021.
Updated 23 November 2020
Two quarterly grants have been paid to UK self-employed traders that qualify for the Self- Employed Income Support Scheme (SEISS). These covered the periods up to 31 October 2020.
The Chancellor has announced that two further quarterly payments will be made. Traders will still need to qualify for the payments and in particular:
- Have been previously been eligible for the SEISS 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
If these conditions are confirmed then a claim can be made for the following periods:
Quarter 1 November 2020 to 31 January 2021
The maximum that can be claimed for this period is 80% of average, qualifying quarterly earnings capped at £7,500. This is an increase on the previously announced amount of 55%.
The online portal to make a claim will open 30 November 2020 and payments should be received before Christmas.
Quarter 1 February 2021 to 30 April 2021
Details of the amount that will be paid for this quarter will be announced January 2021.
Self-employed traders who, for what ever reason, do not qualify for this grant, but are still suffering financial hardship due to COVID disruption, may be able to claim under the Universal Credit.
The SEISS is taxable…
And don’t forget, when you prepare accounts covering any period during which you received an SEISS grant these will need to be added to your taxable earnings in the relevant tax period.
