The government’s Self-Employment Income Support Scheme (SEISS) is being extended – with those eligible able to claim a second and final grant capped at £6,570.
Individuals will be able to claim the money in August. The grant will be worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
Individuals can continue to apply for the first SEISS grant until July 13 – so far there have been 2.3 million claims worth £6.8bn.
Under this first grant, eligible individuals can claim a taxable grant worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
Those eligible have the money paid into their bank account within six working days of completing a claim.
The eligibility criteria are the same for both grants, and individuals will need to confirm that their business has been adversely affected by coronavirus.
An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by Covid-19 in this later phase.
Further guidance on the second grant will be published on Friday June 12, Chancellor Rishi Sunak has announced.
The scheme was set up to benefit self-employed individuals or those in a partnership whose business has been adversely affected by coronavirus, covering most people who get at least half of their income from self-employment.
The extension has been widely welcomed. Mike Cherry, national chair of the Blackpool-headquartered Federation of Small Businesses (FSB), said: “Keeping the self-employed and those who work in a small business attached to the labour market is crucial to prevent scarring of the economy – the package gives certainty and support to millions.”