Following on from Saturday’s announcement regarding a second lockdown and an extension to the Coronavirus Job Retention Scheme (CJRS) comes more information on further support for the self-employed, via the Self-Employed Income Support Scheme (SEISS).
Originally, plans were afoot to reduce the third phase of SEISS to 20% of an individual’s average earnings but, in line with enhancements to the Job Support Scheme (JSS), this was increased to 40%. Now a second lockdown is upon us, support has been increased further to 55%.
The third phase of SEISS will cover the period from 1 November 2020 to 31 January 2021, with support in the first month of this period being increased to 80% of average earnings, reducing to 40% during the later two months. This gives an average for the three month grant period, which has been rounded up to 55%. The grant will be capped at £5,160 for the three month period.
Claimants for the support must:
- have been eligible for the first two phases of SEISS, although no claim has to have been made, and
- make a declaration that they:
- intend to continue to trade and, as a result of coronavirus, either:
- trade is reduced, or
- trade has temporarily ceased.
Claims will be available from 30 November 2020 and further details on how to claim will be made nearer that time.
As previously, the grant will be taxable and subject to national insurance contributions.
A decision about the level at which the fourth phase of the grant will be available will be made in due course.
We are also here to support you
We will continue to provide you with updates in response to all new government announcements related to financial support for businesses and the self-employed, charities and not-for-profits over the coming weeks, but please know that you can contact us at any time.
We are continuing to work through the lockdown and are here to provide advice and support to our clients. Please contact your usual UHY adviser for further information on the financial support available to you and for guidance from our experts or find your nearest UHY expert here.
