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The Self-Employment Income Support Scheme (SEISS) was recently extended to cover November 2020 to April 2021. Originally the third grant was due to cover 20 percent of average monthly trading profits, but it was later increased to cover 40 percent of average monthly trading profits. Now a national lockdown has been announced from November 5 until December 2, Chancellor Rishi Sunak has once again extended the grant’s offering.
On Saturday, October 31, the Prime Minister announced the Government’s furlough scheme will be extended throughout lockdown.
The scheme will cover 80 percent of employee’s wages, capped at £2,500.
The Government’s support scheme for the self-employed will now also be increased in light of the lockdown announcement.
Applications for the third grant have also been brought forward.
How much is the third self-employed grant worth now?
The portion of the SEISS grant covering November will now be worth 80 percent of average monthly trading profits.
Andrew Oury, Partner at Oury Clark, explained to Express.co.uk: “This makes the third grant up to 55 percent of trading profits and is an improvement to the amount initially announced by Rishi Sunak, which was to be based upon 20 percent then 40 percent of average monthly trading profits, and subject to a lower cap.”
Across the three-month period, the third grant will be capped at a maximum of £5,160.
Currently it is not known how much the fourth SEISS grant will be worth.
Mr Oury added: “It looks like the fourth payment will cover a three-month period from the start of February 2021 until the end of April 2021.
“The amount to be paid is yet to be determined and we have been informed it will be based on the Government’s review.
“No date has yet been confirmed for when claims for this fourth grant will be open.”
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The Chancellor said the Government was responding to the “rapidly changing health picture”.
He added the increased SEISS payment will help people “get through the months ahead”.
But for many, the SEISS scheme has not provided enough support for the self-employed, with many excluded from the scheme since its establishment earlier this year.
Roger Barker, director of policy at the Institute of Directors, welcomed the move but added there were still “significant gaps in the scheme”.
He said: “Many small company directors continue to go without support, it’s long past time to sort this problem.”
When can you apply for the third SEISS grant?
HMRC updated their online guidance for the third grant in late October, to state that third grant applications will open from December 14, 2020.
However, in light of the increase, the SEISS scheme will now open for applications from November 30, 2020.
A date for applications for the fourth grant has not been confirmed yet.
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