Chancellor of the Exchequer Rishi Sunak extended the support available for the self-employed workers who have been hit by the coronavirus crisis on Friday. While the extension of the grant will have been welcome for many hit by the financial impact of the coronavirus pandemic, there is now a deadline to take note of.
This second grant will be worth 70 percent of their average monthly trading profits.
It will be paid out in a single instalment – set to cover three months worth of profits – and it will be capped at £6,570.
The government has said that so far, there have been 2.3 million claims worth a total of £6.8billion via the SEISS.
The first grant that was available was worth 80 percent of average monthly trading profits, with the payment covering three months’ worth of profits, capped at £7,500.
There’s still time to apply for this grant, however the deadline for doing so is looming.
Eligible people must apply by Monday July 13, Mr Sunak has announced.
Under the first grant, eligible people can claim a taxable grant worth 80 percent of their average monthly trading profits.
This is paid out in a single instalment that covers three months’ worth of profits, and it is capped at £7,500 in total.
Individuals who are eligible have the money paid into their bank account within six working days of completing a claim, the government says.
Should a person not have applied for the first grant, that’s not to say they can’t apply for the second grant that has been announced.
Applications for the second grant will open in August, with further guidance on this grant set to be published on June 12.
People who are eligible are likely to have been contacted by HM Revenue and Customs (HMRC).
That said, self-employed people may check online if they believe they are eligible.
Following the announcement of the extension, Jane Tully, director of external affairs at the Money Advice Trust, the charity that runs National Debtline and Business Debtline, commented: “The Chancellor’s extension of the Self-Employment Income Support Scheme will come as a relief to millions of self-employed people who are relying on these funds to get through the Covid-19 outbreak with their business and livelihood intact.
“Through this extension and sensible changes to the Job Retention Scheme, the government should be congratulated for taking a gradual and cautious approach to withdrawing these temporary measures.
“However, gaps in the government’s support for the self-employed remain unaddressed – including owner-directors who receive most of their income through dividends, and the newly self-employed.
“It’s not too late for the government to act on these issues – as the Scottish Government has for the newly self-employed – and we would urge them to bring forward rectifying measures as soon as possible.”