SEISS increase: How much is Self-Employment Income Support Scheme extended grant worth?

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

The Self-Employment Income Support Scheme was first introduced in March 2020, but it will now be extended to cover November 2020 to April 2021. On October 22, Chancellor Rishi Sunak announced financial support will be increased in light of ongoing coronavirus restrictions, so the first extended grant will now be worth more than originally stated.

Mr Sunak said in a statement: “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today.

“These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities.

“I hope the government’s stepped-up support can be part of the country pulling together in the coming months.”

How much is the Self-Employment Income Support Scheme extended grant worth?

Last month the Chancellor announced two more grants would be available under the SEISS scheme.

Each grant will cover two three-month periods, with the first covering November 2020 to January 2021.

Originally this grant was due to be worth 20 percent of average monthly trading profits, capped at £1,875 in total for the three-month period.

However the Chancellor has recently expanded Government financial support, and eligible claimants for SEISS will now receive double this amount.

The first extended grant will be calculated at 40 percent of average monthly trading profits.

Over the three-month period, this will be capped at £3,750 in total.

The Government website explains: “This is a potential further £3.1 billion of support to the self-employed through November to January alone, with a further grant to follow covering February to April.”

DON’T MISS: 
SEISS grant: When can you claim third SEISS grant? [INSIGHT]
How much could you get from Chancellor’s self employment grant? [ANALYSIS]
Rishi Sunak gives lifeline to businesses in Tier 2 with £2,100 fund [VIDEO]

The second extended grant will cover three months from February 2021 to April 2021.

HMRC has not yet announced how much the second extended grant will be worth.

Previously under the SEISS scheme, grants were worth considerably more than the Government is currently offering the self-employed.

The first grant was worth 80 percent of average monthly trading profits, capped at £7,500 in total.

The second grant was worth 70 percent of average monthly trading profits, capped at £6,570 in total.

Who is eligible for SEISS?

To claim from the SEISS scheme, the Government website explains self-employed individuals must:

  • have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants)
  • declare that they intend to continue to trade and either:

– are currently actively trading but are impacted by reduced demand due to coronavirus

– were previously trading but are temporarily unable to do so due to coronavirus

Source: Read Full Article