Since the announcement of another national lockdown details of further support measures have been released for the self-employed, as well as an extension to the period to apply for government backed loans.
Key Points Announced
• Increase in level of support under the third instalment of the UK-wide Self-Employment Income Support Scheme, with people receiving 80% of average trading profits for November.
• SEISS grants will also be paid faster than previously planned – with the claims window opening at the end of November rather than the middle of December.
• More businesses will also be able to benefit from government loan schemes which have been extended to the end of January, while firms can ‘top up’ existing Bounce Back Loans should they need additional finance.
Self-Employment Income Support Scheme (SEISS)
To reflect the recent changes to the furlough scheme, the UK-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits for November.
And to ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14th December to 30th November.
As SEISS grants are calculated over three months, the uplift for November to 80%, along with the 40% level of trading profits for December and January, increases the total level of the third grant to 55% of trading profits. The maximum grant will increase to £5,160.
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.
The SEISS is just one element of a package of support for the self-employed. In addition to this they can also access other elements of the package which includes Bounce Back Loans, tax deferrals, rental support, mortgage holidays and other business support grants.
Extension to Government Backed Loan Schemes and Bounce Back Loan Scheme Adjustment
Deadlines for applications for government-backed loan schemes (Bounce Back loans and CBILS) and the Future Fund have been further extended until 31st January 2021.
The Bounce Back loan scheme rules have also been adjusted to allow businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan.
Please get in touch if you would like assistance or advice on such schemes.