Self-Employed Income Support Scheme (SEISS) Update
As part of the Governments ‘Winter Economic Plan’ that was announced on 24 September 2020, the Self-Employed Income Support Scheme (SEISS) is being extended. Phase 1 of this scheme has already closed and Phase 2 closes for applications on 19 October 2020. This had previously been intended as the final grant available.
However, self-employed individuals who are currently eligible for the SEISS and are continuing to trade but who are facing reduced demand because of COVID-19 are eligible for further grants as follows.
The Third Phase grant will cover the period from 1 November 2020 to the end of January 2021 and will be paid as one lump sum. The grant will be 20% of average monthly profits and will be capped at £1,875 in total.
The Fourth Phase grant will cover the period from 1 February 2021 to 30 April 2021, the Government will decide on the level of this grant over the coming months. By the time of this becoming ‘live’ taxpayers will have submitted their 2019/20 tax returns, as these have a deadline of 31 January 2021, so it is possible that the scheme may be updated to be referenced to this year and possibly be open to those who commenced business after 6 April 2019, who were excluded from claiming grants in the first three phases.
All the SEISS grants are included in trading profits and so subject to income tax and national insurance.