COVID-19 Self-Employment Income Support Scheme (SEISS) Grant Extension announced by the Chancellor on 24 September 2020 and modified on 22 October 2020.

At a glance

  • The SEISS Grant Extension provides for two additional grants to self-employed individuals who are currently eligible for the SEISS.
  • The grant extension offers critical support from November 2020 to April 2021.
  • The first additional grant will cover the period from 1 November 2020 to 31 January 2021 and is less generous than the initial SEISS grants.
  • The government will set the level of the second additional grant and provide details in due course.
  • The grants will be subject to Income Tax and National Insurance.
  • Currently, limited information is available on the qualifying conditions for the grant extension. It is anticipated that some of the conditions under the initial SEISS will continue to apply.

 See Winter Economy Plan by Rishi Sunak: At a glance

 

Overview

The SEISS Grant Extension offers critical support from November 2020 to April 2021 for self-employed individuals who are currently eligible for the SEISS.

  • The extension will provide two additional grants, each covering a three-month period.
  • The first grant will cover the period from 1 November 2020 to 31 January 2021 and will be based on 40% of average monthly trading profits, capped at £3,750.
  • The second grant will cover the period from 1 February 2021 to 30 April 2021. The government will set the level of this grant and provide details in due course.
  • The grants are subject to Income Tax and National Insurance.

Eligibility for the SEISS Grant Extension

Self-employed individuals will be eligible for the grant extension if:

  • They are currently eligible for the SEISS.
    • Note that applicants for the grant extension do not need to have claimed the previous grants under the SEISS.
  • They declare that they are currently actively trading and intend to continue to trade.
    • This means that businesses which have closed during lockdown will need to resume trading if they wish to make claims under the extended scheme.
  • They declare that they are impacted by reduced demand due to coronavirus in the qualifying period.
    • The ‘qualifying period’ for the first grant under the extended scheme is from 1 November 2020 to the date of the claim.
    • It is anticipated that 'reduced demand' will be defined more narrowly than the 'adversely affected' requirement of the initial SEISS grants.

More details are expected soon. As this is an extension and not an entirely new scheme, it is anticipated that some of the qualifying conditions for the initial SEISS grants will continue to apply.

Making a claim

HMRC will issue guidance on applications and claims in due course.

 

 

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