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SELF-EMPLOYED employees now have much more assist as a part of the governments’ measures to assist individuals through the coronavirus disaster.
Staff are being provided assist via the self-employment income support scheme (SEISS), which provides grants to assist those that work for themselves if their revenue has been negatively impacted.
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The entire you possibly can declare is now capped at £7,500 for assist over three monthsCredit score: Getty Pictures – Getty
Functions for the primary grant closed on July 13, 2020.
The second grant, price as much as £6,570, opened for functions on August 17 and closed on October 19, 2020.
In September, Chancellor Rishi Sunak then extended the self-employed scheme to assist employees through the winter.
And earlier this week, he increased the third self-employed grant to £7,500, protecting 80% of buying and selling earnings for November to January.
Here is what it’s essential to learn about making use of for the SEISS scheme.
What’s the third grant and the way a lot will I get?
Below the self-employed income support scheme (SEISS), the federal government will cowl 80% of your buying and selling earnings over three months.
Beforehand, self-employed employees had been solely set to obtain government grants worth 40% of average monthly profits from November via to January 2021.
The most recent grant was set to be price £3,750 however was increased to £5,160 over the weekend.
It meant self-employed employees would have obtained 55% of buying and selling earnings for the subsequent three months – together with 80% of buying and selling earnings in November.
However yesterday, Mr Sunak increased it to 80% of trading profits for November to January – as much as a most of £7,500.
The federal government has additionally introduced there will be a fourth grant protecting February to April 2021, nevertheless it’s but to substantiate the small print together with how a lot it’s going to be.
You do not have to repay the grants if you happen to’re eligible, however it is going to be topic to revenue tax and self-employed national insurance.
Self-employed employees who’re struggling can obtain the payout in addition to claim Universal Credit, however it is going to be classed as revenue and should have an effect on how a lot you obtain in advantages.
What different assistance is there for self-employed employees?
THE authorities has additionally launched the next measures to assist self-employed employees and companies through the coronavirus outbreak:
Earnings-tax deferrals: Self-assessment revenue tax funds, that had been due in July, could be deferred to the top of January subsequent yr.
Lease help: Companies who had been struggling to pay their rents had been protected against eviction till the top of June.
Coronavirus enterprise interruption mortgage scheme: SMEs can get loans and overdrafts of as much as £5million for as much as six years and the federal government will assure as much as 80 per of those.
Grants of as much as £10,000: Small companies can get grants of as much as £10,000 to assist with ongoing enterprise prices.
VAT funds: VAT funds could be deferred for 3 months.
Tax invoice assist: SMEs that can’t afford their tax payments can ask HMRC for a “time to pay” association so any debt assortment is suspended.
Enterprise charges vacation: A 12-month enterprise charges vacation has been launched for a lot of companies.
When can I declare the third grant?
As a part of the adjustments to the help, functions for the self-employed grant have been introduced ahead from December 14 to November 30.
In different phrases, you will not be capable of declare but.
HMRC mentioned it’s going to present full particulars about claiming and functions on the Gov.uk website sooner or later.
Am I eligible to say for a grant?
With a view to declare the third payout, self-employed employees should have been eligible for the primary and second grant, even if you happen to did not declare them.
You could additionally declare that you just intend to proceed to commerce and that you just’re both at present actively buying and selling however are impacted by lowered demand because of the coronavirus.
Alternatively, it’s essential to declare that you just had been beforehand buying and selling however are briefly unable to take action because of the pandemic.
To be eligible, you additionally should have filed a tax return for 2018/19, that means it’s essential to have been self-employed earlier than April 6, 2019.
The grants are calculated based mostly on a median of your earnings over three tax years – 2016/17, 2017/18 and 2018/19.
For those who did not commerce in 2016/17, then it is going to be based mostly in your common earnings in 2017/18 and 2018/19, or in 2018/19 if that is the one yr you traded.
You could additionally earn greater than half of your complete revenue from self-employment and your buying and selling revenue should be lower than £50,000 a yr to qualify.
Sadly, self-employed employees who’re firm administrators or run their companies as restricted corporations can’t apply.
However if you happen to declare maternity allowance this is not going to have an effect on your eligibility for the grant.
How do I declare?
You can also make your declare through the Gov.uk website as soon as they open for functions.
Self-employed employees will want the next information to say:
New guidelines imply self-employed workers excluded from coronavirus grants may now be eligible.
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