11th November 2020More help on its way for the self-employed! The SEISS scheme explained.

Following the announcement of a second lockdown, the government have announced an extension of the self-employed income support scheme.

This scheme received praise during the first lockdown as it softened the blow for the majority of those who operate as self-employed.

What does the second scheme mean?

On 5 November 2020 it was announced that there will be two further grant payments to qualifying individuals. These grant payments will cover the six-month period to April 2021.

The first grant will cover the period 1 November 2020 until 31 January 2021 and will amount to 80% of three months average trading profits. The grant payment is capped at £7,500.

The details of the second grant payment covering the remaining three months have not yet been released by the government.

Tips

• Make a note in your diary! Claims for the first grant can be made from 30 November. It is worth being aware that the window for claiming the grant is likely to be time-limited.
• Your accountant can’t make the claim on your behalf.  Although your accountant can assist you with queries you have on making the claim and your eligibility, you must make the claim using your personal tax account with HMRC. If you do not have a personal tax account then speak to your accountant and they can help you set one up.
• Don’t forget, the grants are taxable! In line with the grant payments made earlier this year the government have announced that the grant payments are taxable and subject to income tax and national insurance.
• You should therefore keep your accountant in the loop on the grants received so they can ensure all payments are reported on your Tax Return. Furthermore, it may make sense to ear-mark some of the grant to cover the future tax liabilities.

With the support available in a constant state of flux, it can be difficult to keep up with the latest measures. Please get in touch to discuss and we would be happy to help – our partners are here to support you through these challenging times.

These details are in accordance with Government guidelines on 10 November 2020.

The information contained in this guidance has been obtained from public sources and every attempt has been made to ensure its accuracy at the date of publication. In this ever-changing environment, this information is subject to change and we will not accept liability for losses arising from changes in the law or the interpretation thereof.