As part of the new incentives to financially aid those negatively impacted due to the ongoing COVID-19 pandemic, the Chancellor released details of newly implemented schemes to ease the financial burden of decreased demand and restricted trading in this difficult economic period.
Therefore, please find outlined below details relating to the Self-Employment Income Support Scheme and Local Authority grant funding.
Self-Employed Income Support Scheme (‘SEISS’)
The Government announced two additional taxable SEISS grants for self-employed individuals who meet the application criteria attached to each Scheme.
- Being previously eligible for the Self-Employment Income Support Scheme — first and second grant — although making claims against the past Scheme is not necessary and does not exclude you from make a fresh claim for this updated grant.
- Declaring an intention to continue to trade, and either:
- Are currently actively trading but are impacted by reduced demand due to coronavirus.
- Were previously trading but are temporarily unable to do so due to coronavirus.
Grants will be paid in two lump-sum instalments each covering three-month periods (November 2020 to January 2021, and February 2021 to April 2021).
The first grant will be calculated based on 40% of three months average trading profits, paid out in a single instalment and capped at £3,750.
The second grant will cover a three-month period from the start of February 2021 until the end of April 2021. The Government will review the level of the second grant and determine this in due course.
Making a claim:
We suspect that the process will be the same as previous grant applications, and will be completed via the HM Revenue & Customs portal. If there are any changes, we will inform you when they are announced.
Local Authorities will receive additional funding from Central Government to support businesses in high alert level areas (tier 2 and above) which are not legally closed, but which are severely impacted by the COVID-19 restrictions pertaining to social gatherings.
The funding afforded to Local Authorities is to be based on the number of relevant hospitality businesses in their area.
Local Authorities will receive a funding amount that will be the equivalent of: –
- For properties with a rateable value of £15k or under, grants of £934 per month.
- For properties with a rateable value over £15k and below £51k, grants of £1,400 per month.
- For properties with a rateable value of exactly £51k and over, grants of £2,100 per month.
- This is equivalent to 70% of the grant amounts given to legally closed businesses (worth up to £3,000/month).
Please note, Local Authorities will also receive a 5% top up amount to these implied grant amounts to cover other firms that might be affected by the local restrictions, but which do not neatly fit into these categories.
It will be up to Local Authorities to determine which businesses are eligible and applications will be made through their websites, so we would suggest you contact your local Council for further information, such as the application process and their respective eligibility criteria.
Firms in very high alert level areas will qualify for greater support, whether they be closed (up to £3,000 per month) or actively operating. In the latter case, assistance is being provided through business support packages provided to Local Authorities as they transition to the corresponding alert level.
For further clarification, please find attached a factsheet which includes all current information.
Should you have any further questions, or wish to discuss your options and the best way forward for you and your business, please contact a member of the White Hart Associates team on 0208 878 8383. We are happy to help and bring much needed clarity on the choices you face at this difficult time.