Update on Self-Employment Income Support Scheme (SEISS)
Ahead of the second national lockdown starting Thursday 5th November the UK Government have updated their guidance for some financial support measures. The updates are intended to provide additional support to businesses and business owners due to the extra restrictions.
Updates have been issued for the Self-Employment Income Support Scheme and the various government backed loans.
Self-Employment Income Support Scheme (SEISS)
Under the SEISS there are 2 further grant periods remaining. These run 1 November 2020 until 31 January 2021 and 1 February 2021 until 30 April 2021.
For the 3 months ending 31 January 2021, the Government was originally to provide a taxable grant covering 40% of an average of 3 monthly trading profits, paid out in a single instalment and capped at £3,750 in total. The grant has been increased to 80% for November 2020. Due to this increase, the taxable grant for this period will now be for 55% of an average of 3 monthly trading profits, paid out in a single instalment and capped at £5,160 in total.
The grant for the 3 months ending 31 January 2021 will be able to be claimed from 30 November, earlier than 14 December previously announced.
The same criteria for the initial SEISS grants apply for the eligibility of this grant. Individuals do not have to have applied for the initial grants to apply for these latest grants. As with the initial grants, applications must be made by the person who the grant is for. Accountants and tax agents have not been given the facility to make the claims on behalf of their clients. The level and claim date of the grant covering the 3 month period ending 30 April 2021 is to be reviewed and set in due course. HMRC will provide full details about claiming and applications in due course too.
Government Backed Loans
The current Government backed loans available to small and medium sized businesses to support them through the pandemic are the Coronavirus Bounce Back Loan, allowing borrowings between £2,000 and £50,000, and the Coronavirus Business Interruption Loan Scheme, allowing borrowings up to £5 million.
These loan schemes are now open until 31 January 2021. Businesses with an existing Bounce Back Loan can also now top up their loan (to a total maximum of £50,000) should they need to.
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.