Updated 06/11/2020 9.31am
Chancellor Rishi Sunak has unveiled more financial support for the self-employed following government’s decision to U-turn on a second national lockdown.
England began its second nationwide lockdown on Thursday 5 November lasting until Wednesday 2 December. All restaurants, pubs and non-essential shops will close during this period.
The scheme currently allows the self-employed to claim 40% of their average earnings from the last 12-months to cover a period of three-months, and is capped at £3,750.
Those who are eligible will now be able to claim up to 80% of profits during the November-January period under the Self-Employed Income Support Scheme (SEISS).
The enhanced scheme will open for applications from the end of November, and the government will provide a taxable grant calculated at 80% of three months average monthly trading profits, capped at £7,500. This is an increase from the previous amount of 55% which was announced on Monday 2 November.
The government is providing the same level of support for the self-employed as is being provided for employees through the furlough scheme which has been extended until March 2021.
The government has announced a fourth grant covering the February-April 2021 period with further information to follow.
The grants are taxable income and subject to National Insurance contributions.
Sharon Smith, CEO of Herefordshire & Worcestershire Chamber of Commerce, said of the latest announcement:
“The news of an enhanced scheme for the self-employed will come as a great relief to many, but it is essential that government communicates the next steps for businesses readily so that employers and the self-employed can access vital information to get them through the next stage of the coronavirus pandemic.
“Those who are still seeking information about what aid is available locally are encouraged to get in touch with the Chamber so that we can signpost you to the latest announcements.”
BCC Director General Adam Marshall said of the additional support:
“Bringing the Self-Employed Income Support Scheme in line with the extended furlough scheme will help many through a period of hardship and closure. New grants, paid faster than previously planned, and extended loan schemes, will also help to ease cash flow concerns. However, Ministers must immediately consider extending the support on offer for a longer period, given the difficult winter ahead.
“Despite this extension, there are still many businesses and individuals who have through no fault of their own not yet been able to access any government support since the start of the pandemic. They too will require help to sustain their businesses and avoid further increases in unemployment.”
To find out more about the latest updates, and to check for eligibility, please visit here.
Source: BBC News & Gov.uk
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