What do you mean by SEISS?

UK Government has supported self-employed because of the impact of pandemic Coronavirus on their business with a scheme known as Self-Employment Income Support Scheme (SEISS).

Due to recent outbreak, those self-employed individuals have suffered a reduced demand and are unable to continue with their business temporarily, this scheme is huge relief for them.

The scheme is very much helpful for self-employed as it come up with grants which covers the period from November 2020 to January 2021 and February 2021 to April 2021.

Generally, SEISS grants are calculated over three months. In regards to Grant Extension, you have to be eligible for first and second grant of Self-Employment Income Support Scheme and need to show the required documents which proves that you intend to trade further, however, due to coronavirus your business have been impacted.

Third and Fourth Grants:

Prime Minister Boris Johnson has announced the support for self-employed employees in the upcoming lockdown from 5 November to 2 December. Self employed earnings of 80% and 40% will be covered up for the month of November and December respectively. Also, in the month of January, the earnings of £5160 will get covered up. The third grant will be open at the end of November. However, no specific date is mentioned yet. The third SEISS grant for lost earnings will be for the period November 2020 and January 2021.

For November 2020, the grant will be increased from the previously announced level of 40% of trading profits to 80%. Therefore, from 1 November 2020 to 31 January 2020, there will be increase in the total level of the grant from 40% to 55% of trading profits i.e, Taxable grant will be paid in one instalment and capped at £7500 in total.

There will be a fourth grant covering a percentage of average income spanning February to April 2021, but it’s not yet known how much this will cover or when the deadline for applying will be.

The grant will be paid in one lump sum instalment and HMRC has clearly informed that those who didn’t claim first and second grants, they can claim for third and fourth grants, if needed. In short, you don’t need to have claimed the first or second payments to claim the third and fourth grant.

The guidance for third and fourth grants will be published by HMRC at the earliest. HMRC will provide details about claiming and applications in guidance on GOV.UK in due course. The online service for the third grant will be available from 30 November 2020. HMRC will review the level of the fourth grant and set this in due course.

Criteria to be fulfilled for Eligibility:

It has to be noted that 40% of average trading profits will be considered for third grant and at the amount of £3750, it will get capped. However, in terms of fourth grant, it is still kept under review and information will be revealed soon. There is good news for businesses who hampered because of the pandemic as they are now allowed to claim for third and fourth grants.

The businesses must show the following evidences to claim the grants:

• - Business is running smoothly but got affected by less demand due to Coronavirus.
• - The business is temporarily closed due to Coronavirus.
• - The individuals are already eligible for Grant 1 and 2 of SEISS.
• - Business has shown the intend to trade further.