At the start of the Coronavirus lockdown, the Government announced that they would offer financial support to self-employed businesses that were adversely affected by the pandemic.
Businesses that were eligible to apply for the grant were able to claim in May 2020. There is currently a second opportunity to make a claim which ends on 19 October 2020.
When Rishi Sunak announced the Winter Economy Plan last week, he stated that the Government is going to continue to support self-employed businesses because many are still struggling, especially as further Coronavirus restrictions have been introduced.
The Self Employment Income Support Scheme Grant (SEISS) has been extended until April 2021.
An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to trade actively but face reduced demand due to coronavirus. If you are not sure if you qualify for the grant read our blog written in March – Self Employment Income Support Scheme, this explains the eligibility criteria in more detail.
The initial lump sum is worth 20% of average monthly profits, up to a total of £1,875.
A second grant will be available for self-employed individuals from February 2021. As yet, we are unsure how this second grant will be calculated. The Government are planning to release this information early next year once they have more information about the continued impact of the Coronavirus pandemic on the economy.
It is important to note that these grants do not need to be paid back to the Government. They are not loans. However, the grants are subject to Income Tax and National Insurance Contributions, so you need to take this into account when planning your finances.
If you are planning to apply for the SEISS grant and you would like some more advice about how it works then feel free to contact us.
You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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