Self Employed Income Support Scheme (SEISS) – further grants

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Self Employed Income Support Scheme (SEISS) – further grants

The SEISS has been extended for a further six month period, with further grants being available for two separate three month periods from 1 November 2020 to 31 January 2021 and 1 February 2021 to 30 April 2021.  The third grant covering the period November 2020 to January 2021 will equal 80% of the self employed individual/partner’s average monthly profits, up to a maximum of £2,500 a month, ie £7,500 in total.   It had previously been announced that the third grant would be at the rate of 55% of average monthly profits, but the amount which can be claimed has now been brought into line with the extended Job Retention Scheme. The rate of the fourth grant covering the period from February to April 2021 is to be confirmed.

The qualifying criteria for the extended SEISS grants remain unchanged from those applying to the first and second grants. Individuals who eligible under the first and second grant schemes will therefore also be eligible for the third and fourth grants. It is not necessary for the individual to have actually made a previous claim.

Each SEISS claim will need to be supported by a statement confirming that the individual intends to continue to trade, and either:

  • Are currently actively trading but the business has been affected by reduced demand owing to Covid-19; or
  • Were previously trading but are temporarily unable to do so owing to Covid-19.

The claims process will follow that of the previous two grants, and the online portal will open for applications for the third grant (covering the period November 2020 to 31 January 2021) on 30 November 2020. Payments will be made in a single lump sum, as before, and will continue to form taxable income of the business for the period of receipt.

If you have any questions, please get in touch with your usual Newby Castleman LLP contact.