In his recent statement, the Chancellor announced that the SEISS would be extended for 6 months, from 1 November to the end of April 2021. This means that the scheme is now made up of four grants rather than the original two.
If you’re eligible for the scheme and you haven’t done so, you should act now to apply for the second grant as the deadline for applications is 19 October.
Here’s a summary of the latest position on the SEISS.
The original scheme – grants 1 and 2
Until recently, the SEISS was made up of two taxable Government grants available to the self-employed (e.g. sole traders) whose businesses have been adversely impacted by COVID-19.
The key eligibility criteria are:
- You must have submitted a self-assessment tax return for tax year 2018/19.
- You must earn more than 50% of your total income from self-employment.
- Your average trading profits must be less than £50,000 per year.
- You can continue to work and claim the grant.
- You don’t have to apply for the earlier grant to obtain subsequent grants. So if you didn’t apply for grant 1, you can still apply for grants 2, 3 and 4.
- You can also apply for Universal Credit. SEISS grants don’t make you ineligible. But if you receive a grant, this is income which could reduce your payments under Universal Credit.
- Your business must be actively trading and you must intend to continue to trade.
Grant 1
The first grant was due for the period from 13 May to 13 July. It is now closed to new applications.
Grant 2
This grant is currently open to new applications. But the deadline to apply is 19 October, less than 2 weeks away. Don’t delay – apply now!
In addition to the criteria above, to be eligible, your business needs to have been badly affected by COVID-19 on or after 14 July 2020.
The grant is worth up to £6,570 in total.
You will be paid a single grant made up of 70% of 3 months’ average monthly trading profits, but capped at £2,190 per month.
The NEW extended scheme – grants 3 and 4
In his recent statement, the Chancellor announced that the SEISS would be extended for another 6 months to the end of April 2021. Two further taxable grants will be now available.
Grant 3
This grant is not open for applications yet.
It will cover businesses affected in the 3 months from 1 November 2020.
The grant is worth 20% of 3 months’ average monthly trading profits. It will be paid out in a single lump sum, subject to a cap of £1,875 in total.
Grant 4
Again, not open for applications yet.
This will cover the three-month period from February 2021 to the end of April.
The value of this grant has yet to be announced. More details will follow.
To be eligible for grants 3 and 4, you must:
- Be eligible for the original SEISS (grants 1 and 2). You don’t have to have made a claim for grants 1 and 2, but you must be eligible under the original scheme.
- Declare that the business is actively trading and intends to continue to trade.
- Declare that the business has been affected by reduced demand due to COVID-19 in the qualifying 3-month period.
How to apply
You need to apply on-line using the Government’s website – see:
You’ll need the following information:
- Your self-assessment unique taxpayer reference (UTR).
- Your NI number.
- A Government gateway user ID and password. If you don’t have one of these, you can create one quickly when making the application.
- Your bank details.
If you need help on this or any accountancy, tax and small business issues, get in touch for a no-obligation discussion – see our Contact Us page for how to reach us.
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