On Friday we reported on the announcements the Chancellor made in his Winter Economy Plan. For our self-employed clients, the most important was the SEISS extension that will begin in October and last for six months.
As you will be aware, SEISS is the government’s Self-Employment Income Support Scheme for eligible people whose incomes have been adversely affected by the coronavirus pandemic. When it was launched in May, you could claim 80% of your average monthly profits for March, April and May (up to a maximum of £7,500). The second phase of the scheme allowed you to claim 70% of your average profits for June, July and August (capped at £6,570).
If you haven’t claimed the second grant, you can still do so. The deadline for claims is 19th October.
SEISS extension 1
The latest SEISS extension will cover the three-month period from the beginning of November to the end of January. However, the support on offer is much less generous: taxable grants will only cover 20% of your average monthly trading profits (capped at £1,875).
It’s not yet known when SEISS applications will open. We’ll update you on this as soon as we know.
To be eligible for the SEISS extension grant, you don’t need to have claimed either of the first two grants. However, you do need to:
- Declare you are actively trading and intend to continue trading
- Declare you are affected by reduced demand due to COVID-19 during the qualifying period (November to January).
The second SEISS extension will cover the period from the beginning of February to the end of April. Currently, we don’t know how much that grant will be. Many self-employment advocates will be lobbying for it to be higher, but currently that seems optimistic. Our best guess is that it will remain at 20% of trading profits or will be lower. Again, we’ll update you as soon as we know.
Once the government has published information on how to claim the SEISS extension grants, we’ll post details on this blog. And remember, if you haven’t claimed the 70% of trading profits allowed by the second grant, do so as soon as you can – the deadline is now only days away.
About Ben Locker
Ben Locker is a copywriter who specialises in business-to-business marketing, writing about everything from software and accountancy to construction and power tools. He co-founded the Professional Copywriters’ Network, the UK’s association for commercial writers, and is named in Direct Marketing Association research as ‘one of the copywriters who copywriters rate’.