The Chancellor has just announced he is doubling the Self Employment grant, to be eligible for the Grant Extension self-employed individuals, including members of partnerships, 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
The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Job Support scheme.
The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this in due course.
The grants are taxable income and also subject to National Insurance contributions.
HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
Peter J Harvey MBE