3rd December 2020 Posted by - Alexander Accountancy
HM Treasury has published a further Treasury Direction made under the Coronavirus Act 2020, ss. 71 and 76, which modifies and extends the effect of the Self-Employment Income Support Scheme (SEISS).The Direction mainly deals with the expansion of the SEISS from 1 November 2020 to 29 January 2021, officially referred to as the SEISS Grant Extension 3 (SEISS 3).
The self-employed will receive 80% of average trading profits for November, December and January. This will mean a maximum grant for the three months of £7,500 made available to those who meet the eligibility requirements. The claim window for applying for the grant opened on 30 November 2020 and closes on 29 January 2021.
To be eligible for an SEISS 3 payment, self-employed individuals, including members of partnerships, must meet the following criteria in relation to a trade:
- the business of which has suffered reduced activity, capacity or demand in that period from that which could reasonably have been expected but for the adverse effect on the business of coronavirus or coronavirus disease, and
- which the claimant reasonably believes will suffer a significant reduction in trading profits for a relevant basis period from that which would otherwise have reasonably been expected as a result of that reduced activity, capacity or demand.
Claimants must also have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed the previous grants).
An additional second grant will be made available from 1 February 2021 to 30 April 2021. The level of this second grant amount is subject to review and will be set in due course.
