The Self-Employment Income Support Scheme (SEISS) has been extended until April 2020 providing critical support for the self-employed. The scheme was announced by the Chancellor in September and has now been modified in October. The scheme comprises of four grants; the first two have closed, but the third will now open on the 1st November 2020.
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 grants are subject to Income Tax and National Insurance.
Eligibility for the SEISS Grant Extension
Currently eligible for the Self Employment Income Scheme. The businesses need to declare that they are currently actively trading and intend to continue to do so. They must declare their business has been impacted by reduced demand due to coronavirus in the qualifying period.
The eligibility criteria for the Income Support Scheme (SEISS) is as follows, and all must apply to the business:
- traded in the tax year 2018 to 2019 and submitted Self Assessment tax return on or before 23rd April 2020, for that year
- traded in the tax year 2019 to 2020
- intend to continue to trade in the tax year 2020 to 2021
Who is not eligible for the Self-Employment Income Support Scheme?
The SEISS grant is not available for people who trade through a limited company or trust. People who recorded profits of more than £50,000 for 2018/2019 may not be eligible for the scheme. Anyone whose self-employment profits for this period were less than their non-trading income may also not be eligible for the scheme, which affects people who are also employed.
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