Self-Employment Income Support Scheme - Extension

The SEISS will be extended in a new form for six months from 1 November 2020. The scheme’s new terms are:

  • The new SEISS grant will only be available to self-employed individuals currently eligible for the existing scheme who are actively continuing to trade but are facing reduced demand due to Covid-19.
  • The extension will be in the form of two taxable grants:
    • The first grant will cover a three-month period from the start of November until the end of January. This initial grant will cover 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.
    • The second grant will cover the following three-month period starting in February. The government will review the level of the second grant and set this in due course.

The SEISS will be extended in a new form for six months from 1 November 2020. The scheme’s new terms are:

  • The new SEISS grant will only be available to self-employed individuals currently eligible for the existing scheme who are actively continuing to trade but are facing reduced demand due to Covid-19.
  • The extension will be in the form of two taxable grants:
    • The first grant will cover a three-month period from the start of November until the end of January. This initial grant will cover 20% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £1,875 in total.
    • The second grant will cover the following three-month period starting in February. The government will review the level of the second grant and set this in due course.

Under the initial extension to the Self-employment Income Support Scheme (SEISS) – above -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 announcements made on 23rd October 2020 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.