The chancellor today (22 October 2020) has announced a change to the third SEISS (Self-Employment Income Support Scheme) which was due for the Autumn/Winter 2020 period.
The Self-Employment Income Support Scheme Grant Extension will be paid in two grants, available from the three month periods covering:
- 1 November 2020 to 31 January 2021
- 1 February 2021 to 30 April 2021
Grant 1 (Nov – Jan)
- The first grant will cover a three-month period from 1 November 2020 until 31 January 2021.
- The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
Grant 2 (Feb – Apr)
- The second grant will cover a three-month period from 1 February 2021 until 30 April 2021.
- The Government will review the level of the second grant and set this in due course.
The current eligibility criteria is:
- 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
Tax and National Insurance
The grants are taxable income and also subject to National Insurance contributions.
You should keep a record of the amounts received, as these will need to be declared on your 2020/21 Tax Return.
Claiming the grant
HMRC will provide full details about claiming and applications in the near future. We’ll provide updates as soon as we find out further information.
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