The Self Employed Support Scheme (SEISS) has been increased, due to the national lockdown that has been imposed on England.
The news comes after the furlough scheme was extended earlier this week.
Here are all of the details of the SEISS increase.
Self Employed Income Support Boosted To 80%
It looked as though the Self Employed Income Support scheme would be winding down with the rest of the government’s support.
However, the latest lockdown has thrown all of those plans into disarray and the government have been revisiting the support they were offering.
Chancellor Rishi Sunak announced that he would be making the SEISS scheme more generous for the lockdown. He explained that the self employed support would rise to 80% of the worker’s trading profits.
This is an increase on the previous figure, which was 40%.
Another Change To The Scheme
It was previously announced that the 80% boost would only be for the month of November, while December and January would remain at 40%.
However, within a few days the government decided to make another change to the scheme, and increase it further. Now they are offering 80% for the entire three month period.
The SEISS grant is calculated over three months (November, December, January) and is paid as one lump sum, which would mean that the grant previously averaged out at 55% per month.
But the new change means that from November to January the self-employed can receive a full 80% of their trading profits, capped at £7,500.
Applications open on 30th November 2020 and the grants will be paid in one lump sum after they have been approved.
Who Is Eligible For The Grant?
A further grant has been announced for the months of February to April, however the details are yet to be released.
It is expected that the criteria for eligibility will be the same as the previous grants:
- You must have been eligible for the previous grants (even if you didn’t apply).
- The business has not permanently ceased at the date of the claim.
- It is the business’ intention to actively resume trading before April 2021.
- The business must have been adversely affected by the COVID-19 pandemic in the month of November.
The grant will be based on the traders reported self-employed profits in the three years up to the 18/19 tax year.
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