Are you self-employed and run your own business or an e-commerce website? If lockdown is having a major impact on your revenue, the government has announced that SEISS will be increased.
Initially announced at 40%, self-employed workers will now receive 80% of their average trading profits for November.
Rishi Sunak that for the wider period of November to January, this would amount to 55% of trading profits. The maximum grant available would be capped at £5160.
To ensure that self-employed workers get the support they need as soon as possible, payments will be made quicker. With claims being brought forward from December 14th to November 30th.
The increase in help comes as we go back into lockdown this week, with the government facing increasing pressure to help millions of workers.
What is SEISS?
SEISS was set up by the government to support sole traders and self-employed workers in partnerships. Support came in the form of grants to help those businesses which had been adversely affected by the coronavirus.
In September, an extension to SEISS was announced to help businesses who were actively trading but had reduced demand because of coronavirus, and businesses that were previously trading but were unable to do so.
Who is eligible for SEISS?
To be eligible for the first two grants you need to have shown the following:
You submitted a self assessment tax return for the year of 2018/19 which included self-employment profits.
You were self-employed for the year of 2019/20 and traded for at least a part of the year.
You carried on a trade which had been adversely affected by the coronavirus.
You meet the profits test, which is less than £50,000 but more than zero.
The government has provided guidance on what constitutes being adversely affected by coronavirus. This could include you not being able to work at times because of self-isolation, caring for relatives or if your business has had to close down or scale back.
How much has the government spent so far?
The Treasury said that £13.7 billion of support has been given to self-employed people through the coronavirus pandemic. This is on top of the £40 billion which employees have received through the furlough scheme.
Is SEISS effective?
Businesses have welcomed the new measures but have warned that there are still many people who are not covered by the scheme. This includes the newly self-employed, sole company directors and workers who have recently lost their jobs.
Are you self-employed and looking for a business to grow your business and connect with customers? At DotGO we have over 17 years of experiencing helping businesses, just like you. Get in touch and speak to one of the team, and find out what we can do for you.