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.
Subscribe to 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
-
Stop inheritance tax perk on pensions, says IFSThe government could raise billions of pounds in revenue by closing inheritance tax loopholes, such as on pensions and AIM shares. Is your pension at risk?
-
Revealed: Best buy-to-let property hotspots in the UKLooking for the best buy-to-let property locations in the UK? We reveal the top 10 postcodes with the strongest rental returns
-
Should your business invest in a VoIP phone service?Here's what you need to know about VOIP (voice over IP) services before landlines go digital in 2025.
-
The end of China’s boomLike the US, China too got fat on fake money. Now, China's doom is not far away.
-
What is the future of Royal Mail in the UK?With fewer of us sending letters and parcels, the Royal Mail is finding dealing with the nation’s post is an increasingly unprofitable and costly business.
-
What's the secret of Manolo Blahnik's success?Fashion maestro Manolo Blahnik shows little sign of slowing down at 81, and his company notched up a record financial year in 2022. What is the secret of his success?
-
Michelle Mone's "tough year of pain"Michelle Mone liked to portray herself as a working-class heroine who worked her way to the top through grit and determination. But her pedestal is built on sand.
-
Trevor Milton, the Elon Musk wannabe, is jailed for fraudThe former CEO of Nikola, Trevor Milton, has been found guilty of lying about the development of the company's electric trucks.
-
Directors should think twice before waiving limited liabilityShould small-business directors ever provide a personal guarantee in return for bank finance?
-
Why Russia's economy is doing better than predictedSanctions were supposed to strangle Russia’s economy, but it seems to be thriving. What’s going on?
