COVID-19 Update – 3 November – SEISS Grant, Loan Schemes and Future Fund Extension

SEISS Increase

The Self-Employment Income Support Scheme Grant is being extended from 1 November 2020 and the government will increase support under the third instalment, with people receiving 80% of average monthly trading profits for November. This grant will also be paid faster than previously planned – with the claims window opening at the end of November rather than the middle of December.

The extension will last for six months, from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.

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 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £5,160 in total.

The grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020. (Roughly (80+40+40)/3)

The Government are providing broadly the same level of support for the self-employed as is being provided for employees through the Coronavirus Job Retention Scheme in November due to its extension through November, followed by the Job Support scheme in December 2020 and January 2021.

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.

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CBILS / CLBILS / BBL / FF extended

The government have also announced that the three coronavirus business interruption loan schemes (Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme & Bounce Back Loan Scheme) and the Future Fund will have the deadlines for applications extended to 31 January 2021.

We are still expecting further clarification on changes to the scheme and will update in due course.