[05.10.20]

Last week we informed clients that the Government had extended the Self-Employment Income Support Scheme (SEISS) for a further six months.  We now have some further information:

The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

The first grant will cover a three-month period from 1^st November until 31^st January. HMRC will provide a taxable grant covering 20% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.

The second grant will cover a three-month period from 1^st February until 30^th April. HMRC will review the level of the second grant and set this in due course.

The grants are subject to Income Tax and National Insurance Contributions.

To be eligible for these grants self-employed individuals, including members of partnerships, must:

• currently be eligible for the Self-Employment Income Support Scheme (although they do not have to have claimed the previous grants)
• declare that they are currently actively trading and intend to continue to trade
• declare that they are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1^st November and the date of claim)

As with the previous Self-Employment Income Support Scheme Grants, you will be able to apply for the new Grants through gov.uk.  The Government will announce in due course when the Grant application process is open.

Castletons Accountants