Third coronavirus self-employed grant opens today – how to apply for £7,500 support
Self-employed workers will have 80% of their incomes subsidised over winter (Image: Getty Images)
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Self-employed workers who still struggling due to the pandemic can apply for up to £7,500 worth of support from today.
The Government's third self-employment income support scheme (SEISS) opens on November 30 – paying £7,500 to those who have been left out of work due to the ongoing crisis.
Under the scheme, sole-traders will get up to 80% of their income subsidised over the November to January period – paid as one single instalment.
SEISS has so far given out two rounds of grants to the self-employed since the pandemic began.
Applications for the first grant closed on July 13, 2020 and the second grant, worth up to £6,570, opened for applications on August 17 and closed on October 19, 2020.
In September, Chancellor Rishi Sunak announced a third grant as he extended the self-employed scheme to help workers survive the winter. Claimants can now submit these forms online.
Who qualifies for Self-Employment Income Support Scheme grant?
(Image: Getty Images/iStockphoto)
To be eligible, you must have filed a tax return for 2018/19 to HMRC, meaning you must have been self-employed on or before April 6, 2019.
In order to claim the payout, self-employed workers must have been eligible for the first and second grant (regardless of whether you claimed them).
You must be trading but with reduced demand due to coronavirus or no longer trading due to the pandemic.
The grants are calculated based on your average profits over three years (ie in 2016/17, 2017/18 and 2018/19).
To qualify, you must earn more than half of your total income from self-employment and your profits must not exceed £50,000 a year.
Self-employed workers who are company directors or run their businesses as limited companies are not eligible for the support.
The Government has announced that there will be a fourth grant covering February 2021 to April 2021. It's yet to reveal what the payout rates for this will be.
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What's the difference between the three grants?
The new terms and conditions state that you can still apply for the support if you missed out on the first coronavirus grant.
As a result, new parents who were out of work when the scheme first launched can now apply.
Self-employed mums and dads who didn't file their taxes for one or more of the following reasons can also now apply:
- Because you were pregnant or you gave birth,
- You were caring for a child under the age of one,
- You were caring for an adopted child who had been with you for less than a year.
Self-employed military reservists who carried out reservist activities for at least three months in the 2018 to 2019 tax year can also now apply.
How can I apply for the help?
You can apply for SEISS support via the Gov.uk website.
Self-employed workers will need the following information to apply:
- Self-assessment unique taxpayer reference (UTR) – if you do not have this, you can find out how to get your lost UTR here
- National insurance number – find out how to locate a lost national insurance number
- Government Gateway user ID and password – if you do not have a user ID, you can create one when you make your claim online
- UK bank details (only provide bank account details where a Bacs payment can be accepted).
How will the money be paid?
The grant will be paid in one lump sum instalment covering three months.
It will start in November 2020 and run until the end of January 2021 – however you won't be able to apply until November 30.
The government will pay 80% of your average trading profits over three months, capped at £7,500.