As part of the Chancellor’s winter economy plan, he announced an extension to the self-employment income support scheme (SEISS).
The extension to the SEISS will be limited to self-employed individuals who:
- qualified for the SEISS under the existing rules for the initial grants (although they do not have to have made a claim under the scheme); and
- are actively continuing to trade and intend to continue to trade but are facing reduced demand due to COVID-19 in the qualifying period; or
- were previously trading but are unable to do so temporarily due to COVID-19.
Full details on how the Government will assess whether the last two tests for eligibility, as set out above, will be met is expected to be published at a later date. It is widely anticipated, however, that the final test will be more narrowly defined than the current requirement of being ‘adversely affected’ when claiming the initial two grants.
The scheme will last for six months, from November 2020 to April 2021. Two further taxable grants will be available, each covering a three-month period.
The third grant under the SEISS will cover 40% of average monthly trading profits, paid out in a single instalment covering the first three months’ worth of profits, and capped at £3,750 in total. Originally announced at 20%, the Chancellor subsequently doubled this after also increasing the same level of support as under the new job support scheme.
The fourth and final grant will cover the second three-month period from the start of February until the end of April, although the amount of this grant will be announced in due course.
It is expected that the process to claim the grant will be similar to the first two grants, but further guidance is awaited to confirm this.