The Government have recently announced that support for the self-employed will be extended in the form of two grants covering a six-month period in total.
The support will be split into two grants – one covering the three-month period from 1 November 2020 to 31 January 2021, and the second covering the three-month period from 1 February 2021 to 30 April 2021.
To be eligible for the Grant Extension, 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)
- Declare that they 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.
For the first grant, the Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering three months' worth of profits, and capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.
The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme in November due to its extension. And then the Job Support scheme in December and January.
The Government will review the level of the second grant and set this in due course.
Please note that the grants are taxable income and also subject to National Insurance contributions.
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.