Coronavirus – Business Support Update – 04/11

Following the headline changes to the financial support measures regarding employment, the impending lockdown restrictions have also triggered the announcement of additional changes to the Self-Employment Income Support Scheme (“SEISS”), as follows:

  • The extension of the SEISS will still provide eligible self-employed individuals with two further support grants, the first covering the period November 2020 to January 2021.  However, the first grant will now cover 55% of three months’ average monthly profits, capped at £5,160 in total. This is based on 80% of average monthly profits being in respect of November (in line with the furlough percentage) and 40% of average monthly profits being paid in respect of December and January. The grant will be paid out in a single instalment.  

  • The opening date of the claim portal has been brought forward from 14 December to 30 November.  As with previous claims for self-employment grants, agents will not be able to make claims on behalf of the taxpayer.

The grants will still be available for both those who temporarily cannot trade due to lockdown restrictions and those actively continuing to trade but facing reduced demand due to COVID-19. The level of the second grant, covering February to April 2021, is yet to be confirmed.

In other news, the application deadline for government-backed loan schemes (Bounce Back; Coronavirus Business Interruption; and Coronavirus Large Business Interruption) has been further extended to 31 January 2021.  The Bounce Back Loan Scheme rules have also been adjusted to allow businesses who have borrowed less than the maximum available (i.e. 25% of turnover) to top-up their existing loans.  

If you have any questions please feel free to contact us.