SEISS November grant: How much will the third grant be worth?
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The Self-Employment Income Support Scheme will provide two further grants, covering November 2020 to April 2021. The third grant, or the first under the extension of the scheme, will cover November to January 2021. The grant was due to cover 40 percent of average monthly trading profits, but this has now been increased to reflect the national lockdown in November.
How much will the third grant be worth?
November’s portion of the grant will be worth 80 percent of average monthly trading profits.
This mirrors the Government’s support for the employed under the furlough scheme.
So in total, the entire third grant will be worth 55 percent of average monthly trading profits.
The third grant will be capped in total at £5,160 over the three-month period and will be subject to income tax and National Insurance contributions.
The fourth SEISS grant will cover February to April 2021, but HMRC has not announced how much the grant will be worth.
The Government website currently states: “The second grant will cover a three-month period from February 1, 2021 until April 30, 2021.
“The Government will review the level of the second grant and set this in due course.”
How should support for the self-employed change over the coming months?
In light of the national lockdown in England in November, the news of an increase to the third SEISS grant will no doubt be well-received by the self-employed.
However, after the lockdown ends experts argue support will still need to be available to help people through the pandemic.
Tania Bowers, Legal Counsel and Head of Public Policy at APSCo, told Express.co.uk: “Support for the self-employed must continue to mirror lockdown restrictions and this is recognised by Government increasing the support to 80 percent of average trading profits for November (subject to cap) and we anticipate an extension of this if the national lockdown extends beyond November.
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“Government must also consider the self-employed in the context of local lockdowns which will inevitably follow the national lockdown.
“We can’t overlook the fact that support for the self-employed wasn’t immediately available during the first lockdown and took some time to prepare.
“For those contractors unable to work at all or at least to the extent they would have expected, the financial burden they have faced since March has been extensive.
“Given that they are also facing the challenges of the private sector rollout of IR35 early next year, there needs to be sustainable and sufficient support in place for the self-employed.”
When can you apply for third grant?
HMRC originally set December 14 as the date applications for the third SEISS grant would open from.
However, this date has now been brought forward to November 30.
HMRC has not announced when SEISS payments will be made, but they will likely be paid earlier than scheduled in light of the lockdown announcement.
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