Research Briefing
Published Friday, 06 November, 2020
To support the self-employed through the coronavirus outbreak the Government has introduced the Self-Employment Income Support Scheme (SEISS).
Coronavirus: Self-Employment Income Support Scheme (673 KB, PDF)
To support the self-employed through the coronavirus outbreak the Government introduced the Self-Employment Income Support Scheme (SEISS).
The Scheme has paid taxable grants worth 80% of someone’s average monthly trading profit, for a three-month period, worth up to £7,500 in total. On 30 April, the Government published the Treasury Direction to HM Revenue & Customs, the statutory guidelines for HMRC to administer the SEISS. The Scheme was opened for applications on 13 May, and closed on 13 July.
On 29 May the Government announced a second round of the SEISS, with those eligible able to claim a second grant, worth 70% of their average monthly trading profit, for a further three months, capped at £6,570 in total. On 2 July a second Treasury Direction was published to this effect. Applications for the second grant were opened on 17 August, and were closed on 19 October. With the closure of the second grant scheme, HMRC has now withdrawn its detailed guidance on the SEISS.[1]
On 24 September the Government announced an extension to the SEISS to be introduced in November, to cover the six months up to the end of April 2021. The SEISS Grant Extension is to be the form of two taxable grants – first to cover November to January, second to cover February to April. Initially it was proposed that the first of these grants would cover 20% of average monthly trading profits, capped at £1,875, but this figure has been revised three times. On 22 October the Chancellor announced the first grant would cover 40% of average monthly trading profits, capped at £3,750. On 2 November the Chancellor announced that the payment for the first month (November) of the first grant would be set at 80% – increasing the total level of this grant to 55% of trading profits, capped at £5,160. Subsequently on 5 November the Chancellor announced that all three months of the first grant would be calculated on the basis of 80% of average trading profits, up to a maximum of £7,500.
HMRC has published further details of the SEISS Grant Extension, as follows:
Who can claim
What the Grant Extension covers
How to claim
Notes :
[1] HM Revenue & Customs, Check if you can claim a grant through the Self-Employment Income Support Scheme, 20 October 2020
[2] HM Revenue & Customs, Self-Employment Income Support Scheme Grant Extension, 5 November 2020
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