The self-employed breathed a sigh of relief on Friday after Sunak threw them an £8billion lifeline. Here, director Nick Marshall, explains how SEISS will continue – and when and how this will be phased out.
The emergency self-employed bailout scheme has been extended for another three months, the Chancellor has announced.
Workers will be able to make a second claim in August for up to £6,570 under the Self Employment Income Support Scheme – at a further £8billion cost to the government.
As we know, the 2.3 million self-employed workers who had already applied for £6.8bn of taxpayer handouts by the end of last week, had feared they would get no further help.
But after it was announced that the furlough scheme would run until October, pressure was on the government to act.
What next?
Those eligible under the SEISS will be able to claim a second and final grant in August.
The grant will be worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
This means:
- Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
- Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
- The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus. Further guidance on the second grant will be published on Friday 12 June.
A move out of lockdown
The government’s support throughout the lockdown so far has been a lifeline for businesses and employees and it is excellent news that the help won’t just stop abruptly.
Employees need to be facilitated to return to work gradually and safely and entrepreneurs – many of which have been dramatically affected by a loss of earnings – need the support to get back on their feet again.
A major concern however is that previously viable firms not able to open until later – such as those in leisure and hospitality will need further assistance in the coming months.
If you would like any further help navigating the changes – or advice on what to do next – contact our team today. Please get in touch via info@beatons.co.uk or call 01473 659777.