Extension of The Self-Employed Income Support Scheme

Extension of The Self-Employed Income Support Scheme

Updated: 26/10/2020

The closing date for application for the second grant of Self Employed Income Support Scheme closed on 17 October 2020.

A third and fourth grant has been confirmed. 

To be eligible for the third and fourth grants, self-employed taxpayers must meet the following criteria.

  • Be eligible for the SEISS (same income conditions as previous) although it is not necessary to have claimed the previous 2 grants
  • Be actively trading at the time the grant is claimed and intend to continue trading
  • Be impacted by reduced demand due to COVID 19 in the qualifying period

The qualifying period for the third grant will run from 1 November 2020 and the fourth from 1 February 2021.

The requirements to be “actively trading” and “impacted by reduced demand” are new terms and no doubt guidance will shortly be published by HMRC.

The requirement to be “ actively trading” will mean that businesses that have had to close during the pandemic but not restarted during the qualifying period will be unable to claim.

The grants will be based on self-employed income for the same tax years as the previous grants meaning that the Self-Assessment tax return 2019/20 tax year will not be considered.

The third grant will be calculated at 80% of average monthly taxable trading profits paid out as a single lump sum covering three months to 31 January 2021 capped at £5,160.  The level has been set so as to provide support in line with The Government Job Support scheme for employees.

The level of the fourth SEISS is under review and will be announced in due course.

HMRC will provide full details on how to claim the grant on gov.uk after 1 November 2020.