There is no doubt that the COVID-19 pandemic had, and continues to have, a major impact on the UK business sector. To recognise this, the UK Government has put in place a number of COVID support schemes to help businesses survive. If you are self-employed, the income support scheme is something you may well be aware of. But what did the latest Budget bring in terms of continuing COVID help for the self-employed under this scheme?
Self-employed income support scheme to continue
In the latest budget, the Chancellor announced that this scheme would continue until September 2021. In simple terms, this will see it carry on providing taxable grants to the self-employed who are eligible to claim it. It should be noted that any grants under this scheme should only be claimed if your income or ability to work has been affected by COVID in the period any grant covers.
Fourth grant for February to May
As confirmed by the Chancellor recently, there is to be a fourth grant made available to those who are eligible. This instalment covers the period from February 2021 to May 2021. It is set to provide 80% of 3 months’ average trading profit and be capped at £7,500. Paid in one instalment, it will factor in your 2019/20 tax return and is now open to those who moved into self-employment in this tax year. You must also be self-employed or a member of a business partnership to be eligible. Applications for the fourth grant are set to open in late-April 2021.
Fifth SEISS grant mooted also
The Chancellor also set out plans for a fifth grant in the latest Budget. This would cover the period June to September 2021, with eligible applications being allowed from late-July 2021. This fifth grant would factor in how much your overall turnover has decreased from April 2020 to April 2021. If your reduction in turnover is 30% or more, you would receive 80% of 3 months’ average trading profit. If it is under 30%, you would get 30% of this average figure.
Contact Highwoods & Associates for more help
It can often be a minefield for the self-employed to navigate the various rules and criteria around grants like the SEISS. If you need a professional accountancy firm to explain it in more detail, complete the contact form on our website today.