Self Employment Grant Extension FAQs

Self Employment Grant Extension

A self-employment grant extension was announced by the Government on 5th November 2020.

The Government have already paid out grants to the self-employed. The first grant was paid out in May 2020 and the second grant was paid out in August 2020.

With the new November lockdown and increased furlough support for employees, additional support is now being offered to the self-employed.

The self-employment grant extension is detailed below in our frequently asked questions.

Who qualifies for the self-employment grant extension?


Unfortunately there has been no expansion to the qualifying criteria.

As a result, if you were excluded from the original self-employment grant claims you won’t qualify for the extension.

Also, the self-employment business must be actively trading or intends to continue trading and must have suffered a significant reduction in trading profits.

What is a significant reduction in trading profits? Is this a new requirement?


HMRC announced on 24th November 2020 an additional requirement, which is different to the previous grant claims.

To claim, the taxpayer must reasonably expect a significant reduction in trading profits. We have covered this in detail in a new blog Significant new tests effecting Self-Employment grants.

How much can I claim under the self-employment grant extension?


The third grant claim is calculated as 80% of 3 months average trading profits.

It is capped at a maximum of £7,500.

The calculation is the same as the first grant back in May. See our Self-Employed Grant Calculator to see how much you can claim

Is the grant taxable?


HMRC have confirmed that all of the self-employment grants are taxable.

What period do the grants cover?


The third grant is to cover the period from 1 November to 31 January 2021.

A fourth grant will cover the period from 1 February to 30 April 2021. No details regarding the level of support has been announced on the fourth grant. However, it is expected to be lower than the current 80%.

When can the self-employment grant extension claim be made?


A claim can be made anytime between 30th November 2020 and 29th January 2021.

Do I need to have made claims previously?


No. You must however have qualified for the earlier grants.

Whether you made the claim or not is irrelevant.

Can I still claim for the earlier self-employment grants?


No. The deadline to claim both of the earlier grants has now passed.

What is the deadline to make this claim?


The deadline is the 29th January 2021.

Where can I find further information?


HMRC have released a brief overview of the self-employment grant extension scheme.

DISCLAIMER – Please note that the content contained in this article is for general information only and is not a substitute for professional advice – read our full disclaimer

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