If you are a self-employed worker who has been affected by the coronavirus pandemic, you can apply for the third Self-Employment Income Support Scheme (SEISS) grant from 30 November due to lockdown 2.
Here’s everything you need to know.
What is the SEISS grant?
The Self-Employment Income Support Scheme (SEISS) is one of the several support schemes initiated by the government in the wake of the coronavirus outbreak to support those who have been financially affected by the virus.
It targets those who are self-employed, providing them with some much-needed income support during these tough times.
Through the SEISS, the self-employed can claim a taxable grant of a certain percentage of their average monthly trading profits (see below). The grant is paid out in a single instalment covering three months.
So far, there have been two rounds of the SEISS grant. The first grant covered the three months of the first lockdown, up to 14 July, and offered 80% of average monthly trading profits. Those eligible could claim up to £2,500 a month (or £7,500 for the three months).
For the second grant, those eligible were able to claim up to 70% of their average monthly trading profit. The maximum that could be claimed per month was £2,190 (or £6,570 for the three months). Applications for second SEISS grant opened on 17 August and closed on 19 October.
On September 24, the government announced an extension of the SEISS in the form of two further taxable grants.
The first will cover the three months from November 2020 to January 2021, and the second will cover the three months from February 2021 to April 2021.
When first announced, the first part of the grant was to cover 20% of average monthly trading profits with a limit per grant of £1,875 in total. The government then revised this to cover 40% of average monthly trading profits, with a total limit of £3,750.
But recently, there have been more changes to these figures.
What’s new with the SEISS grants?
On 2 November, Chancellor Rishi Sunak announced that for the first part of the self-employment support grant extension, applicants would be able to claim up to 80% of their monthly trading profits for November, and 40% for December and January, or 55% of their profits in total, capped at £5,160.
But on 5 November, the day that the second lockdown began, the Chancellor further revised the scheme. Calculations for all the three months of the grant will now be on the basis of 80% of average monthly trading profits.
If you are eligible, you can claim up to £7,500 for the three months. These new figures match the support being provided for employees under the Coronavirus Job Retention Scheme.
According to HMRC, further details for the second extension grant, covering February 2021 to April 2021, will be released soon.
Who can claim the next self-employment grant?
According to information on the gov.uk website, to be eligible for the third SEISS grant you must:
- Have been previously eligible for the SEISS first and second grants (though you need not have claimed these grants).
- Declare that you intend to continue to trade and that one of the following applies to you:
- You are currently actively trading but are impacted by reduced demand because of coronavirus
- You were previously trading but have been temporarily unable to do so because of coronavirus
How do I claim the self-employment support grant?
You will be able to apply for the grant on 30 November 2020. According to HMRC, full details about claiming and applications will soon be available via the gov.uk website.
What other support can I get if don’t qualify for SEISS?
If you’re self-employed but aren’t eligible for the next SEISS grant, there’s no need to panic. There are several other forms of support you can get.
One of these is the Bounce Back Loan Scheme. Through this scheme, you can borrow up to £50,000, but you have to repay the loan within 10 years. You could also be eligible for other support, including the Coronavirus Business Interruption Loan Scheme.
To help you find out the exact kind of help and support you can access if you have been affected by the coronavirus, the government has created a new service to help you find coronavirus support.
Here at MyWalletHero, we have also prepared a handy coronavirus money guide to give you useful tips on how to protect your finances during this crisis and prepare for whatever lies ahead.
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