Briefing 16b- 3rd November
As advised in our Briefing yesterday, please see below further details in respect of the SEISS, CIBLS and Furloughed staff.
Self-Employed Income Support Scheme (SEISS) – Update
The Government announced further support for the Self-employed yesterday afternoon.
The SEISS Grant Extension provides support to the self-employed in the form of two grants, each available for three month periods covering November 2020 to January 2021 and then February 2021 to April 2021.
Who can claim?
To be eligible for the Grant Extension self-employed individuals, including members of partnerships, must:
- have been previously eligible for the SRISS first and second grant (although they do not have to have claimed the previous grants)
- declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to Coronavirus
- were previously trading but are temporarily unable to do so due to Coronavirus
So if you did not qualify for the SEISS before it would appear you still do not qualify
What the Grant Extension covers
As mentioned above, the extension will last for six months – from November 2020 to April 2021. Grants will be paid in two lump sum instalments each covering a three-month period.
The first grant will cover a three-month period from 1 November 2020 until 31 January 2021. The Government will provide a taxable grant covering 55% of average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £5,160 in total.
The grant will be increased from the previously announced level of 40% of trading profits, to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020.
This increase to 80% for the lockdown period of November is so the Government are providing broadly the same level of support for the self-employed as is being provided for employees through the extended Coronavirus Job Retention Scheme in November, and then the Job Support Schemes in December and January.
The second grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the second grant and set this percentage in due course.
As before, the grants are taxable income and also subject to National Insurance contributions.
How to claim
The online service for the next grant will be available from 30 November 2020. HMRC will provide full details about claiming and applications in guidance on GOV.UK in due course.
As before, if you need assistance making this claim then please do contact us.
Emergency Business Loan Scheme
The Treasury has announced that applications for the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS) will now be open until the end of January.
This extension, which carries support before the previous end point of November 30, also applies to the Future Fund – an initiative aimed at UK start-ups.
It was also confirmed that small businesses that already received funds through the BBLS programme – which offers firms cheap loans worth up to £50,000 – will also be able to top up existing loans if required.
The changes were confirmed after the Treasury convened an emergency meeting with Britain’s largest banks in order to review the terms of the Government-backed loan programme.