The grant extension is for self-employed individuals who are currently eligible for the Self-Employment Income Support Scheme and are actively continuing to trade, but are facing reduced demand due to coronavirus (COVID-19).

1. Who can claim

  1. To be eligible for the grant extension self-employed individuals, including members of partnerships, must:
    currently be eligible for the Self-Employment Income Support Scheme SEISS (although they do not have to have claimed the previous grants)
    1. declare that they are currently actively trading and intend to continue to trade
    2. declare that they are impacted by reduced demand due to corona virus in the qualifying period (the qualifying period for the grant extension is between 1 November and the date of claim)

2. What the grant extension covers

The extension will provide two grants and will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum installments each covering a three-month period.
1. The first grant will cover a three-month period from the start of November until the end of January. HMRC will provide a taxable grant covering 20 per cent of average monthly trading profits, paid out in a single installment covering 3 months’ worth of profits, and capped at £1,875 in total. This is now increased to 40%, up to £3750

HMRC are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
2. The second grant will cover a three-month period from the start of February until the end of April. HMRC will review the level of the second grant and set this in due course.
3. The grants are subject to Income Tax and National Insurance Contributions.

3. How to claim

As before, SEISS grants will be made by reference to average profits over the preceding three tax years — i.e., 2016/17, 2017/18 and 2018/19. Again, for individuals who do not have three years of tax returns, average profits are calculated by reference to the previous year or the last two. As before, to be eligible, individuals must have an average annual trading profit of £50,000 or less and derive at least half of their total income from self-employment. Individuals who did not claim under the original SEISS can claim under the grant extension.

Need help?

Need an accountant? Call me now!

Similar articles:

Why It’s Worth Organising Corporate Events
Why It’s Worth Organising Corporate Events

Corporate events are an excellent way to build teamwork, boost employee morale, and create a positive atmosphere at work. Besides the benefits associated with integration and relationship building, there are also specific financial advantages that these events can...

Why Business Entertainment Expenses Are Not Tax-Deductible
Why Business Entertainment Expenses Are Not Tax-Deductible

Many businesses utilise various forms of business entertainment, such as shared meals, sporting events, or gifts for clients, to build better relationships and promote their services. While these activities may seem like a justified part of running a business, there...

4th Grant
4th Grant

Fourth grant for self-employed will start at the end of April 2021, the exact date will be announced soon.   Good news for people who did not quallfied for SEISS so far!!!   If you started your seld-employment after March 2019 or you were not entitled to the...