Under the new round of the Self-Employment Income Support Scheme (SEISS), which opens on 1 November, self-employed workers will be able to apply for a grant of up to 40% of their typical three-monthly profits, up to a maximum of £3,750. This is twice the maximum payout of £1,875 initially promised by the chancellor, when he said in October that a third round of grants would be made available to cover the trading period from 1 November to 31 January 2021. But it compares poorly to payouts of up to £7,500 and £6,750 offered during earlier iterations of the scheme.
The latest grant also has more exacting criteria. In previous rounds, self-employed workers only had to show they had been adversely affected in some way by the pandemic; they will now be required to show they have been hit by falling demand specifically. This means, for example, self-employed people unable to work because they are self-isolating will not be able to apply for this award, although they would have been eligible previously.
Otherwise, the eligibility rules from the previous rounds of the SEISS remain in place. Self-employed workers need to have filed a tax return for the 2018-2019 financial year and earn more than 50% of their total income from self-employment. They must also have an average annual trading profit of less than £50,000 a year. The government has also promised a fourth round of the SEISS, with grants available to cover the period from 1 February 2021 to 30 April 2021, though it has not yet decided what they will be worth. Self-employed workers who think they are eligible for the third round grants can apply via the government’s online portal at Gov.uk.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Review: The Hut, Colwell Bay – a seafood lunch with a holiday feelTravel Getting to The Hut in Colwell Bay on the Isle of Wight is almost as rewarding as actually eating there
-
What is the 7 year inheritance tax rule and how does it help cut your bill?Speculation is rife chancellor Rachel Reeves has plans to target inheritance tax once again in her upcoming Budget. But the 7 year inheritance tax rule can save you thousands - here’s how it works.
-
Global investors have overlooked the top innovators in emerging marketsOpinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Investors should cheer the coming nuclear summerThe US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
Healthcare stocks look cheap, but tread carefullyShares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
The Palace of Westminster is falling downThe Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Should the Online Safety Act survive?The Online Safety Act, a measure to safeguard children, is having unintended consequences
-
The secret behind Sweden’s successOpinion Sweden's stock market is in rude health, says Max King. Why can't Britain follow suit?
-
Prabowo Subianto: Indonesia’s Deng XiaopingPrabowo Subianto, like his Chinese hero, is taking power in his 70s with big ambitions for his country. Yet many view his return to politics with dread
