SEISS Extension – Are You Eligible for the New Self-Employment Grant?

16th September 2020

Understanding SEISS Extension

If you’re self-employed and looking for the best way to navigate the ongoing pandemic, the Self-Employed Income Support Scheme (SEISS) extension is sure to be of great interest. The self-employment grant extension will begin in October and continue for 6 months providing a much-needed lifeline for many. So let’s find out more about the SEISS grant and eligibility.

As a quick note, updates are continuously being made, so be sure to keep an eye out for more details as the month’s progress to avoid missing out on vital funding opportunities.

What Exactly is SEISS?

Coronavirus has adversely affected the income of many self-employed people. Lockdown periods, budget squeezes and more have left people struggling which is why the government introduced a Self-Employment Income Support Scheme. This was first launched in May 2020, allowing those eligible to claim 80% of their average monthly profits for March, April and May (up to a maximum of £7,500). The second phase of the scheme allowed people to claim 70% of their average profits for June, July and August (capped at £6.570).

If you haven’t yet claimed the second grant, you can still do so. The deadline for claims is 19^th October so be sure to act fast to help receive the funding you’re entitled to.

SEISS Extensions

The SEISS help available has now been extended, but there are certain eligibility criteria to be aware of. Here’s a closer look into Extension 1 and Extension 2 of the scheme.

SEISS Extension 1 will cover the three-month period from the beginning of November 2020 to the end of January 2021. This is great news on the surface for the self-employed, however, the support on offer isn’t as generous as it was previously. Taxable grants will only cover 20% of your average monthly trading profits (capped at £1,875).

Am I Eligible?

To be eligible for the first extension, you don’t need to have claimed any previous SEISS grants. That said, it’s essential to:

Declare you’re actively trading and intend to continue trading
Declare you’re affected by reduced demand due to COVID-19 during the qualifying period which runs from November to January.

If you tick the above boxes, then applying for the scheme will provide you with much-needed funds. Applying on time is also vital.

Extension 2

The scheme will then be extended once again with the second extension period running from the beginning of February to the end of April. There’s not yet any news about how much the grant will be and realistically it’s too early to be optimistic, despite the self-employed lobbying for more support. As the coronavirus drags on, self-employed people are finding it increasingly difficult to stay afloat what with grants also dwindling. We’ll update you as soon as we know more.

If you need help managing your finances during these challenging times or require the support and advice of professional accountants, don’t hesitate to get in touch. We’re here to help and will tailor our services to meet your specific business needs.