The UK Government announced more support will be available for the self-employed in the form of two grants. Each grant is available for three-month periods covering November 2020 to January 2021 and February 2021 to April 2021.
Eligibility for Grant Extension:
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
What the Grants cover:
First Grant:
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021.
The Government will provide a taxable grant covering 40% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £3,750 in total.
Second Grant:
The second grant will cover a three-month period from 1 February 2021 until 30 April 2021.
The Government will review the level of the second grant and set this in due course. The grants are taxable income and also subject to National Insurance contributions.
HMRC will provide full details about claiming and applications in due course and we will update you when the guidance is available. You can find out more from HMRC in the Self Employment Income Support Scheme Grant Extension guide
We’d be happy to hear from you with any further questions or if you require clarity on any matters. Simply email info@ammu.uk or arrange a call