Self-Employment Income Support Scheme (SEISS) Deadlines and Extensions

The deadline for the 2nd SEISS grant looms, please apply before it is too late.

The second SEISS grant is worth 70% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £6,570 in total.

If you’re eligible and your business has been adversely affected on or after 14 July 2020, you must make your claim for the second grant on or before 19th October 2020.

That is less than 10-days from now.  If you need help making your claim or are unsure, please call us on 020 8761 8000.

The SEISS grants have been extended for 2 further payments but with a new prerequisite.

The scheme has been extended for a 3rd and 4th grant for those that are actively continuing to trade, but are facing reduced demand due to the coronavirus pandemic.

To be eligible for the grant extension self-employed individuals, including members of partnerships, must:

  • currently be eligible for the Self-Employment Income Support Scheme (although they do not have to have claimed the previous grants)
  • declare that they are currently actively trading and intend to continue to trade
  • declare that they are impacted by reduced demand due to coronavirus in the qualifying period (the qualifying period for the grant extension is between 1 November and the date of claim)

The extension will provide two grants and 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 third grant will cover a three-month period from 1st November 2020 until the end of January 2021.  This grant will only be 20% of your average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and capped at £1,875 in total.

The fourth grant will cover a three-month period from the start of February until the end of April.

HMRC will review the level of this grant and set it in due course as its value will be dependent on how the pandemic has affected the workforce in February 2021.

All the SEISS grants are subject to Income Tax and National Insurance Contributions.

Bounce Back Loan Scheme (BBLS)

Bounce Back Loans for Struggling Businesses: Ending 30 November!

If your small or medium-sized business has struggled due to adverse trading conditions caused by the pandemic, it may be eligible for a support loan through the Government’s Bounce Back Loan Scheme (‘BBLS’). However, time is running out — you only have until 4 November 2020* to arrange the loan with a lender. That’s just a few weeks away at time of writing. There are some great features, so don’t miss out if you need financial support …

Bounce Back Loans are interest-free for 12 months (with no repayments being required during that time). Thereafter, the interest will be just 2½% per annum. Small businesses can borrow between £2000 and £50,000 depending upon their turnover (the maximum allowed is 25% of their turnover in the 2019 calendar year, up to the £50k ceiling). Another major feature is that the Government guarantees the loan. BBLS loans have a six year term, but you can repay the loan early without incurring an early redemption fee.

The main requirements around eligibility are that:

  • your business is UK based;
  • it was established before 1st march 2020;
  • it has been adversely affected by the pandemic;
  • it is not in bankruptcy, liquidation or undergoing debt restructuring.

N.B. Banks, insurers (excluding brokers), re-insurers, public-sector bodies and state-funded primary/secondary schools are not eligible.

* IMPORTANT NOTE: many of the high street banks now seem to be stating a deadline of the end of November instead of the 4th. However, Taxfile’s advice is to apply before 4th November (the Government’s official, published deadline) to avoid possible disappointment.

A few other caveats apply, so Read more