Extended into 2021: Self-Employed Income Support

Extended into 2021: Self-Employed Income Support

The Government has extended the Self-Employment Income Support Scheme into 2021.

If you’re self-employed, you’ll already know about this Scheme – and you might have already claimed for a grant. The extension to the Scheme means you can claim for two more grants to cover:

  • November 2020 to January 2021
  • February 2021 to April 2021

The Government states that this support is, “broadly the same level as is being provided for employees through the Job Support scheme”.

Are you eligible for the extra Self-Employed Income Support grants?

You must:

  • be self-employed
    As an individual or member of a partnership.
  • have been previously eligible for the first and second Self-Employment Income Support Scheme grant
    You just need to have been eligible – you don’t need to have claimed the previous grants.
  • declare that you intend to continue to trade

and either:

a) you’re currently trading but your business has been negatively affected by reduced demand due to coronavirus

or

b) you were previously trading but you temporarily can’t due to coronavirus

How much can you claim?

For November and December 2020, and January 2021, grants will be:

  • worth 40% of your average monthly trading profits
  • capped at £3,750 total
  • paid as one payment, to cover the three months

For February, March and April 2021. the grant will be paid as one lump sum but the Government hasn’t yet announced how much you’ll be able to claim.

Do you have to pay tax on the grants?

Grants from this Scheme count as taxable income so if your personal income is over your individual threshold, you’ll have to pay tax. You might also be liable for National Insurance contributions.

How do you claim these extra Self-Employed Income Support grants?

The Government hasn’t yet published details of how to claim. When we have more information, we’ll update this post.

Have your say

How is the coronavirus affecting you and your small business? We’re keen to hear from you – get in touch with us on LinkedInFacebook or Twitter.

Photo by Jallen Fosati on Unsplash

Suzanne Worthington

Senior Writer

Tide Team

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