The Self-Employment Income Support Scheme has been made available for a third and fourth grant which will be extended for a further six months. The third grant will run from November 2020 to January 2021 and those eligible will get 20% of their average trading profits. This will be capped at £1,875. No details are currently available for the fourth grant.
Payments can now be delayed further for self-assessments taxpayers. Tax that is due by the 31st January 2021 can now be paid over the 12 months following.
How will the new self-employed grants work?
It has also been announced that the current Self-Employment Income Support Scheme (SEISS) has been extended, though it is at a much lower level than before:
- The Self-Employment Income Support Scheme has been made available for a third and fourth grant which will be extended for a further six months. The third SEISS grant will be from November to January. The fourth grant will then be from February until April. We are still unsure when applications will open.
- The third grant will cover 20% of trading profits for three months, which will be capped at £1,875. The level of the fourth grant has yet to be set but the Government will announce this in due course.
As with the SEISS currently, the third and fourth grants will be calculated in the same way.
- Only those who are eligible for the current SEISS grant can apply.
Self-assessment taxpayers can now delay payments further
Those who are due to pay tax by 31 January 2021 will be able to use HMRC’s ‘Time to Pay’ service which will allow this to be paid by January 2022.