Government Financial Support for Self-Employed
The government has released a raft of measures to support businesses and sole traders through the Covid-19 pandemic. Use the support finder to see what schemes are still available for you and your business.
Self-Employed Grant Extension (05/11/2020)
The generosity of the Self-Employment Income Support Scheme (SEISS) Grant Extension will be increased from 40% of average trading profits (as previously reported), to 80% as announced by Government on 5th November.
In addition, the opening of the service has been brought forward from 14 December to 30 November.
The SEISS Grant Extension provides support to the self-employed in the form of two further grants, each covering the three-month periods covering November 2020 to January2021 and February 2021 to April 2021.
The third grant will cover the three month period from 1 November 2020 – 31 January 2021. This will be provided by the Government in the form of a taxable grant covering 80% of average monthly trading profits, paid out in a single instalment covering three months’ profits, capped at £7,500 in total. This is an increase from the previously announced 55% and now aligns the scheme with the grants awarded under the CJRS extension announced earlier today.
The fourth grant will cover a three-month period from the start of February until the end of April. The UK government will review the level of the grant and set this in due course.
The grants are taxable income and subject to National Insurance contributions.
Who is eligible?
To be eligible for the scheme, 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)
- 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 online service for the third grant will be available from 30 November 2020.
The deadline for the third SEISS claim is 29 January 2021.
Enhanced Time to pay for Self-Assessment taxpayers
The government will give the self-employed and other taxpayers more time to pay taxes due in January 2021, building on the Self-Assessment deferral provided in July 2020. Taxpayers with up to £30,000 of Self-Assessment liabilities due will be able to use HMRC’s self-service Time to Pay facility to secure a plan to pay over an additional 12 months. This means that Self-Assessment liabilities due in July 2020 will not need to be paid in full until January 2022. Any Self-Assessment taxpayer not able to pay their tax bill on time, including those who cannot use the online service, can continue to use HMRC’s Time to Pay Self-Assessment helpline to agree a payment plan.
SEISS Grant Extension
Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.
An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April - ensuring our support continues right through to next year.
To help you keep your business operating, we’ve made it easy to access the correct and most up-to-date information. Below, you’ll find information on government support for businesses and individuals and practical advice to help you to manage your business through this unusual period.