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When the fresh national lockdown was announced last week, the government quickly announced an extension to the furlough scheme. This will see 80% of furloughed employees’ wages covered by the state. However, self-employed people waiting for an SEISS scheme update were left in limbo for a few more days. We can now confirm that the Self-Employed Income Support Scheme has been extended on more favourable terms. This post explains who can claim, what you can claim and when you can claim it.
SEISS scheme update – support to rise
Before the recent lockdown announcement, the most recent SEISS scheme update stated that – for the third grant – eligible self-employed people could claim 40% of average monthly trading profits for the period November 2020 to January 2021.
This support has now been upped to 80% of trading profits for November 2020, reverting to 40% for December 2020 and January 2021. This means that the total grant claim will stand at 55% of average monthly profits, capped at a maximum of £5,160.
Eligibility to remain the same
We posted about SEISS eligibility changes on 2 November 2020. The criteria remain the same. In brief, you had to have been eligible for the first and second grants, whether you claimed them or not. You also have to declare that you intend to continue trading and that you either:
- are experiencing reduced demand because of coronavirus
- were trading, but are temporarily unable to do so because of the pandemic.
When you can claim the 3rd SEISS grant
The next round of SEISS claims was originally due to open on 14 December 2020. However, this has now been moved forward to 30 November 2020.
While you will be able to claim the money earlier, there could be a drawback. If the national lockdown in England does not end on 2 December 2020, it’s unlikely the government will increase the SEISS grant for December 2020 and January 2021.
Remember, if you are self-employed, you need to claim the SEISS grant yourself. We cannot do it for you. However, the online application is simple and HMRC will alert you in advance if it thinks you are eligible.
SEISS scheme update – how much will the fourth grant be?
As yet, the government has not announced how much the fourth SEISS grant will be. This will cover the period from February 2021 to the end of April 2021. We will let you know how much support will be available nearer the time.
As always, if you are a THP client and you would like advice on SEISS or any other government funding scheme, please get in touch with your account manager.
About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
Jon’s appreciation for THP extends to his fellow team members and the board. “They really know how to run a successful business,” he says. He’s keen on IT and systems development as critical to success, and he continues to guide THP to be at the cutting edge and effective.