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.
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.
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.
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
HMRC have confirmed that all of the self-employment grants are taxable.
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%.
A claim can be made anytime between 30th November 2020 and 29th January 2021.
No. You must however have qualified for the earlier grants.
Whether you made the claim or not is irrelevant.
No. The deadline to claim both of the earlier grants has now passed.
Here is the weblink to the HMRC portal which will allow you to start your claim for the third self-employment grant.
The deadline is the 29th January 2021.
HMRC have released a brief overview of the self-employment grant extension scheme.
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