The furlough scheme was due to end on 31 October but following the announcement that England is to enter another period of lockdown, this has been extended until March 2021. On the back of this, the Government have recognised that the self employed will need additional support and the SEISS has been increased.
The main points to note are:
- Grants will be available for the six months from November 2020 to April 2021, payable in two lump sums each covering a three month period.
- The first grant covers November 2020 through to January 2021 and will pay 80% of average monthly trading profits, capped at £7,500. This grant has increased significantly from the original announcement which provided support at only 20%.
- A second grant will be available to cover February 2021 through to April 2021 but the level of that grant is still to be confirmed.
- Claims can be made from 30 November.
- The grant continues to be subject to Income Tax and National Insurance.
- Provided that you were eligible to claim the previous grants (the last of these closed on 19 October) then you will be entitled to claim for the next six months too. If you were eligible but did not previously make a claim, you are still able to make a claim in November.
- A declaration will be required to confirm there is an intention to continue to trade but you either cannot trade or are suffering a loss of income due to Coronavirus restrictions. HMRC are stepping up their surveillance in this area, particularly around those businesses which have since ceased to trade, so it is important that this statement is considered carefully or there is a risk that any grant received will need to be repaid.
If you would like further information, please contact Jill Walker, Private Client Tax Director.
You can view our previous information regarding self employment income support here.