Covid-19: Support for the Self-Employed

Support for the Self-Employed

Self-Employment Income Support Scheme

The Self-Employment Income Support Scheme (SEISS) is the Government grant scheme for self-employed individuals whose businesses have been adversely affected by coronavirus.

The first grant closed on 13 July 2020, the second grant closed on  19 October 2020. An extension to this scheme was recently announced (see below)

More guidance and how to apply is available here

The SEISS Grant Extension provides critical support to the self-employed and will provide two grants between November 2020 and April 2021. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19.

Grants will be paid in two lump sum instalments each covering a three-month period.

  • The first grant will cover 3 months’ worth of profits from the start of November until the end of January. It will be worth 40% of average monthly profits and will be capped at £3,750 in total.
  • The second grant will cover a three-month period from the start of February until the end of April.It will be worth 40% of average monthly profits and will be capped at £3,750 in total.

HMRC will use the average profits from tax returns in 2016-17, 2017-18 and 2018-19 to calculate the size of the grant. The scheme will be open to those where the majority of their income comes from self-employment and who have profits of less than £50,000 and have been adversely affected by Covid-19.

Deferral of Self-Assesment Payment

For the self-employed who use the “Time to Pay” self-service facility, payments deferred from July 2020, and those due in January 2021, will now not need to be paid until January 2022.

The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 can be deferred until January 2022. If you were due to make a self- assessment payment on account on 31 July 2020 then you are eligible for the deferment. The deferment is intended to assist self-assessment taxpayers, including those who are self-employed, who are suffering hardship as a result of the coronavirus.

This is an automatic offer with no applications required. No penalties or interest for late payment will be charged if you defer payment of your July 2020 payment on account until January 2022.

Other support for the self-employed

Locally, those who are self-employed in Cheshire and Warrington may be able to access support through:

  • Accelerate, which offers fully-funded online training to businesses with less than 50 employees, with courses available in areas including marketing,management and project management.
  • Business Growth Programme, which can help your business access fully funded support (in the form of one-to-one meetings, workshops, seminars, masterclasses and more) across a wide range of areas.