Furlough and Self-Employed Income Support Scheme (SEISS) extended - Self-employed freelance looking at government help available during lockdown 2.0

Furlough and Self-Employed Income Support Scheme (SEISS) extended

Posted on 11th November 2020 by

The chancellor, Rishi Sunak, has confirmed that both support schemes for employees and the self-employed will be extended following the announcement of a second lockdown.

The job support scheme which was set to replace the furlough scheme in November has been postponed, while the original plan for the third SEISS grant to cover just 40% of average monthly trading profits, has been scrapped.

Government backed support loans (Bounce Back Loan) will remain available for businesses too, until 31 January. Originally, the deadline for some programmes was 30 November. 

Financial help for the self-employed during lockdown 2

The Self-Employed Income Support Scheme (SEISS), will be extended until January, covering 80% of profits.

Designed to support self-employed people who are not eligible to benefit from the furlough scheme (Coronavirus Job Retention Scheme), the SEISS will provide a taxable grant covering 80% of November, December and January profits, of up to £7,500.

The total sum covering the three months will be paid in one single imbursement.

Applications for those eligible for the grant will be open from 30th November.

The grant is the third to be provided for the self-employed on the same terms as those offered to cover spring and summer 2020.

A fourth grant will follow, covering February, March and April 2021. The value of this is yet to be confirmed.

Who is eligible for SEISS?

The grant extension is open to those who were eligible for the first and second grants, although you do not have to of claimed the previous grants, to claim for this one.

To be eligible for the scheme, you must have:

  • submitted your Income Tax Self-Assessment tax return for the tax year 2018-19
  • traded in the tax year 2019-20
  • been trading when you apply, or would be trading but for COVID-19
  • anticipated to continue trading in the tax year 2020-21
  • lost trading/partnership trading profits due to COVID-19

Your trading profits must be less than £50,000. More than half of your income must also come from self-employment, to be eligible.

One of the following conditions must be met:

  • The applicant must have trading profits/partnership trading profits in 2018-19 of less than £50,000 and these profits must constitute more than half of the applicant’s total taxable income (probably tested by reviewing tax return details); and/or
  • The applicant must have average trading profits in 2016-17, 2017-18, and 2018-19 of less than £50,000 and these profits must constitute more than half of their average taxable income in the same period.

How can I apply for the autumn SEISS grant?

HMRC directly contact those who are eligible. 

The SEISS has worked by HMRC using existing information to identify those eligible and invited applications from these people.

Those invited have then needed to confirm that they meet the eligibility criteria.

The grant is paid directly into the bank account stated on your application form.

The online service for the third grant will be available from 30 November 2020. Further details are yet to be released by HMRC.

Furlough scheme extended till end of March 2021

The furlough scheme which will pay up to 80% of a person’s wage, up to £2,500 a month, has also been extended.

The scheme will be reviewed again by the government in January.

Since the scheme has been revised, anyone who was made redundant after 23 September can be rehired and placed on furlough.

To find out more about the furlough scheme for those members of staff who are unable to work because their workplace is closed or because there is not enough work, visit GOV.UK.

If you would like a quote for your business insurance, please call our friendly award-winning team on 0333 321 1403 today, or click to get a quick online quote in minutes!

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Related Articles:

What is the impact of COVID-19 on freelancers and contractors?

Comment on Self-Employed Income Support Scheme

Further guidance issued on furloughing employees and the Coronavirus Job Retention Scheme (CJRS)

Sources:

https://www.bbc.co.uk/news/business-54824120

https://www.bbc.co.uk/news/business-52052123

https://www.gov.uk/government/publications/self-employment-income-support-scheme-grant-extension/self-employment-income-support-scheme-grant-extension

 

Author Katherine Ducie, Marketing Executive

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