Following on from the weekend’s announcements that the Job Retention Scheme would be extended, today the Chancellor announced increased support for the self-employed.

Like it’s counterpart for the employed, the previous proposals set out just under a month ago have now been significantly amplified to handle the continual impact that COVID is having on the economy.    

Let's start by doing a recap of the updates to the scheme over the last few months:

• Phase 2 of SEISS closed on 19 October. 
• The third phase was to run from 1 November 2020 to 30 April 2021 and would have been  in two stages, running November 2020 to end of January 2021 and from February until end of April 2021.
• Previously support was to be 20%, then two weeks ago increased to 40% over the three months from November to January 2021 and  on Monday this week it was announced at 80% of average trading profits for the month of November. So this would have increased the total grant for the three months to end of January to 55% of trading profits versus 40% previously. The maximum grant will now increase from £3,750 to £5,160.

Where we are today - the Scheme now:

• Today (Thursday 5 November), it was announced that the third stage will run from November to January 2021 and sees a further increase. The 80% will now be available across the whole three month period. The maximum grant will now increase to £7,500 which is the same level as the two previous grant awards. Grants are also to be fast tracked, with the claims window opening for the first stage of Phase 3 of SEISS by the end of November, whereas previously it was 14 December.
• In monetary terms this sees a total of £7.3 billion of support for the self-employed between November and January.
• A fourth stage will cover February to April and the level of grant for that period is yet to be announced. Similar rules as for Phase 1 and 2 will apply to be eligible to claim under the Phase 3 stages and you do not have to have claimed either of the previous two phases to bank monies now.

Similar rules as for Phase 1 and 2 will apply to be eligible to claim under the Phase 3 stages and you do not have to have claimed either of the previous two phases to bank monies now.

Here to help

We'll update this blog with further guidance as and when it's released by the Government. In the meantime if you have any questions, please do not hesitate to get in touch with me or usual Johnston Carmichael adviser.