Self-Employment Income Support Scheme (SEISS) Grant Updated - November 2020
The SEISS scheme is being extended but the 3rd and 4th grants are not so generous as the previous ones and the conditions are more onerous.
The qualifying period for the third grant runs from 1 November to the date of claim and the qualifying period for the fourth grant is expected to run from 1 February 2021 to the date of that claim.
To be eligible for the grant the following conditions must be met:
Be currently eligible for the SEISS but not necessarily have claimed it
You must be actively trading currently and have intentions to carry on trading
Must be impacted by Covid-19 with a fall in demand
Point 1 is as it stands but let us explore the other two points.
Point 2, says you must be “actively trading” and therefore generating income. Those businesses forced to close completely will not qualify. Previously you qualified if the business was just “adversely affected”.
Point 3 speaks about “fall in demand” and this is not fall in profit. So, you could be in a position where demand/sales are static compared to pre-covid period but your costs of delivery and other costs of operating under Covid may have increased. This would appear not to be covered by the scheme.
How much will you receive if you qualify
The 3rd SEISS grant will provide a grant calculated as 80% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £2,500 per month. This level has been set so as to offer broadly the same level of government support that is being provided to employees through the JSS. The level of the fourth SEISS grant is to be kept under review and will be set in due course.
All grants remain taxable income as does their predecessors.