Following on from Boris Johnson’s announcement to extend the Furlough Scheme through until December, it has been further announced that the Self-Employment Income Support Scheme grant will also be extended. The scheme will last for 6 months from November 2020 to April 2021 with grants being paid in two instalments, each covering a three month period.
For November 2020 the government will provide self-employed workers with 80% of their average trading profits. December through until 31st January remains at 40% of average trading profits, this takes the total grant from 40% to 55% of average trading profits from 1st November 2020 to 31st January 2021. The second grant will cover 1st February 2021 to 30th April 2021, this grant is under review and is set to be announced by the government in due course. Both grants are taxable income and subject to National Insurance contributions.
In order to claim under this scheme, self-employed workers must meet the following criteria:
- Have been eligible for the Self-Employment Income Support Scheme first and second grant however, workers do not have to have claimed previous grants
- Declare that they intend to continue to trade or;
-have previously been trading but have temporarily been unable to due to the coronavirus
-currently trading but have seen an impact in reduced demand due to the coronavirus
The grant will be available to claim from 30th November 2020. HMRC will provide the details about how to claim and applications on the GOV.UK website.
For further information visit the government website.