Coronavirus: Self-Employed grants update

As announced recently, the government will be providing two taxable Self-Employment Income Support (SEISS) grants to help those experiencing reduced demand due to COVID-19. This includes Self-Employed workers who are continuing to trade, as well as those who cannot trade temporarily.

The scheme will be available to anyone who was previously eligible for the SEISS grants and meets the eligibility criteria.

Timings

The grants will be paid in two lump sum instalments, each covering three months. The first grant will cover the three-month period from the start of November 2020 until the end of January 2021.

The amount of taxable grant will be calculated based on 40% of the average trading profits over three months and paid out in a single instalment, which will be capped at £3,750. This doubles the maximum grant amount that had been planned previously.

The second grant will cover the 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. We will provide you with these details once they have been published.

Further guidance

More details on the Self-Employment Income Support Grant and eligibility criteria can be found on the GOV.UK website here: https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension.

For further information or advice on any of the issues raised, or for help with cash flow management and accessing extra financial help during the Coronavirus pandemic, please call us on 01225 325580, email info@richardsonswift.co.uk, or contact your usual client director.

Please note that this is only a summary of the main issues and should not be construed as advice. Every effort has been made to ensure factual accuracy at the time of publication (28 October 2020), however, the government response to the Coronavirus situation is changing 24-7, so it should not be relied upon completely.