Increased support Announced for the Self-Employed During National Lockdown
Self-Employment Income Support Scheme (SEISS)
The Government has now announced that as well as extending the Coronavirus Job Retention Scheme (CJRS), they will also be increasing the support under the third instalment of the UK-wide Self-Employment Income Support Scheme (SEISS).
Self-employed individuals will now receive 80% of their average trading profits for November. This means that the 80% for November along with the 40% level of trading profits for December and January, increases the total level of the third grant to 55% of trading profits. The new maximum grant will now increase to £5,160.
As well as increasing how much support is available, the speed at which the grant will be delivered is also being improved. The original roll-out date for the third SEISS grant was 14 December 2020, however, this is now being fast-tracked to 30 November 2020.
To be eligible for the SEISS grant, self-employed individuals must:
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
- declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus or
- were previously trading but are temporarily unable to do so due to coronavirus
Loan Application Period Extended
In addition, more businesses will be able to access additional financial support in the form of government backed loans such as the Business Bounce Back loan and Coronavirus Business Interruption Loan. The deadline for applying for these loans was originally set for 30 November 2020 but this deadline has now been further extended until 31 January 2021.
For businesses that borrowed under the Bounce Back Loan scheme and borrowed less than their maximum (i.e. less than 25% of their turnover) then they will be able to top-up their existing loan. Businesses will be able to take-up this option from next week; they can make use of this option once.
Author: James Cornthwaite FCA CTA
A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...
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