The chancellor recently announced enhanced terms for the third of the Self-employment Income Support Scheme (SEISS) grants.
The basis of the third of the SEISS grants has increased from 20% to 40% of average trading profits for those temporarily unable to trade because of coronavirus. This will be capped at £3,750.
Previous grants
- First grant: 80% of 3 months’ trading profits, to a maximum of £7,500
- Second grant: 70%, to a maximum of £6,570
- Third grant: 40%, to a maximum of £3,750
- Fourth grant: No level has been set yet – this is being kept under review
Who can claim?
Those who are self-employed or are members of a partnership (and meet specific eligibility criteria). To claim, there must have been eligibility for the first and second grants, though claims do not have to have been made. Declaration must be made that trading is intended to continue and that either of the following is the case:
- currently actively trading but are impacted by reduced demand due to coronavirus, or
- were previously trading but are temporarily unable to do so due to coronavirus.
Will tax be payable on the grant?
All of the grants are liable to income tax and self-employment NICs for the 2020/21 tax year. It hasn’t yet been decided whether the fourth grant will be taxable in 2021/22.
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