SEISS alert: Grant applications will open next week – everything you need to claim

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SEISS provides taxable grants to eligible self-employed workers who have seen their business impacted by coronavirus. The Government was set to gradually reduce the support from this scheme as winter approached but recently, Rishi Sunak announced SEISS would be extended on more generous terms as a second lockdown as introduced.

The changes were made to reflect a similar extension of the furlough scheme, with the Chancellor confirming the following in early November: “So far we’ve provided £13.7 billion of support to self-employed people through the crisis – and I’ve always said we will continue to do everything we can to support livelihoods across the UK.

“The rapidly changing health picture has meant we have had to act in order to protect people’s lives and I know this is an incredibly worrying time for the self-employed.

“That is why we have increased the generosity of the third grant, ensuring those who cannot trade or are facing decreased demand are able to get through the months ahead.”

As a result of the extension, support from the government will be paid out to eligible claimants in the form of two further grants.

Each will cover three month periods, covering November 2020 to January 2021, and then February 2021 to April 2021.

To claim a third wave grant, a person will need to head online and the online service for processing these claims will become available from November 30.

The coming grants will be calculated at 80 percent of three months’ average trading profits, paid out in a single installment.

The cap on this will be £7,500 in total, an increase from the previously announced amount of 55 percent.

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To be eligible for a third grant, a person must be self-employed, which includes members of partnerships, and must also:

  • Have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either currently actively trading but are impacted by reduced demand due to coronavirus or
  • were previously trading but are temporarily unable to do so due to coronavirus

The Government was keen to point out that SEISS is just one element of a number of support packages available.

The self-employed and small business owners may also be able to access bounce back loans, tax deferrals, rental support mortgage holidays and other business support grants.

According to the government’s figures, their loan schemes have supported more than one million businesses that have accessed over £60billion of finance.

On top of this, individuals may also be able to access furlough payments, boosted Universal Credit and various debt payment holidays.

It should be remembered that SEISS grants are treated as taxable income.

Additionally, they’ll also be subject to National Insurance contributions.

While it remains to be seen if the fourth set of grants will be as generous as the third, the government have detailed they’ll provide more details “in due course.”

Full details on all the state support extensions can be found on the government’s website.

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