The deadline for the second grant of the Self-Employment Scheme is 19th October, those who have yet to make their submission should do so urgently.
In delivering his Winter Economic Statement on 24 September, the Chancellor announced a welcome extension to this Support Scheme.
The SEISS Grant Extension provides ongoing support to the self-employed and will be available to cover six months’ worth of profits for the period from 1 November 2020 to the end of April 2021. The Self-Employment Income Support Scheme grant will be limited to self-employed individuals, including members of partnerships, who are currently eligible for the SEISS, although they do not have to have claimed the previous grants.
As a reminder, to be eligible for the Self-Employment Income Support Scheme, at least half of the individual’s income must be coming from self-employment and they must have trading profits below £50,000 p.a. Those trading profits are calculated as an average of the last three years’ trading profit declared on their self-assessment tax return. If they have been trading for less than three years, then an average is calculated on the years they have available.
The individual will need to confirm they are currently actively trading and intend to continue to trade but are facing reduced demand due to COVID-19.
The initial lump sum will cover three months of profits, from 1 November 2020, calculated as 20% of average monthly trading profits, paid out in a single instalment of up to £1,875.
An additional second grant will be available from 1 February 2021 to 30 April 2021, but the level of this second grant has not yet been set by the Government and will be subject to review.
As with the initial grants paid under the Self-Employment Income Support Scheme, these further grants will be subject to both income tax and National Insurance.
To discuss your own circumstances contact Tax Director Angela Keery by email angelakeery@bakertillymm.co.uk or Tel: 028 9032 3466.