Self employed to benefit from second stage of support scheme

  • 17 Aug 2020

The UK Government has announced a second support grant for the self-employed whose trade has been hit by coronavirus.

More than three million people may be eligible for the payment of up to £6,570 each, which Chancellor Rishi Sunak said would be the final hand-out.

If you think you are eligible and haven't been contacted by HMRC, you can go onto the online system which will tell you if you are eligible, and when it is you can make a claim.

 

Those eligible will now be able to receive a second and final grant worth 70% of their average monthly trading profits, with the money set to land in their bank accounts within six working days of making a claim.

The scheme is aimed at those whose self-employed businesses have been adversely affected by coronavirus since 14 July. However, like the first rollout of this scheme, it does not include support for the newly self-employed, those whose earnings are above a £50,000 cap, or directors of limited companies.

Chancellor of the Exchequer Rishi Sunak said: "Our self employment income support scheme has already helped millions of hard working people, whose get up and go drive is crucial to our economy.

"It means that people’s livelihoods across the country will remain protected as we continue our economic recovery - helping them get back on their feet as we return to normal."

HMRC will contact all potentially eligible customers to advise them that they can claim for a second and final SEISS grant.

 

The eligibility criteria remains the same as for the first grant, with people needing to have had trading profits of no more than £50,000, making up at least half of their total income.

The SEISS is part of a comprehensive package of support for self-employed people, including Bounce Back loans, income tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays and the various business support schemes the government has introduced to protect businesses during this time.  

FSB National Chairman Mike Cherry said: “While this new phase of support will be a lifeline for many self-employed, there are significant groups who continue to be left behind. Thousands of company directors and newly self-employed people have been left with no help for months now. We continue to urge the government to find ways of supporting these hard-working business owners, many of whom remain in financial peril.”

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