The Self-Employment Income Support Scheme grant extension provides critical support to the self-employed in the form of 2 further grants, each available for 3 month periods. Grant 3 covering November 2020 to January 2021 and Grant 4 February 2021 to April 2021.
How will the new SEISS grants be paid to me?
The extension will last for 6 months, from November 2020 to April 2021. Grants will be paid in 2 lump sum instalments each covering a 3 month period.
How is the SEISS grant calculated?
The 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 (over the last 3 tax years), 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 are 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.
What percentage will the SEISS grant 4 be worth?
The Government has already announced that there will be a fourth grant covering February 2021 to April 2021. The Government will set out further details, including the level, of the fourth grant in due course.
Is the SEISS grant classed as taxable income or subject to National insurance contributions?
Yes, the grants are taxable income and also subject to National Insurance contributions.
Can I claim SEISS & be furloughed by my employer?
Yes, if you are self employed and you are also furloughed by your employer you can still claim the SEISS if you business has been negatively affected financially by Covid19.
HB Accountants will publish further details as soon as they are published by Gov.UK
We hope this information helps you and we are here for you during this difficult time. We will continue to keep you updated as the Government releases new information. Our business contingency plan is in place and we will do everything we can to support our clients during this uncertain period, please do not hesitate to contact us here if you have any concerns or queries.
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The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any errors or omission or for any person acting on or refraining from acting on the information provided in the above