In addition to the announcement of the Job Support Scheme (JSS), Rishi Sunak also announced that extended support would be available to the self-employed.
In recognition of the impact COVID-19 has had on the self-employed, the Self-Employed Income Support Scheme (SEISS) provides financial support to those effected during this troublesome period, therefore the extension of the SEISS is welcomed.
The extended support will be limited to those already eligible for the SEISS scheme and are actively continuing to trade but are facing reduced demands due to COVID-19.
To be eligible to the scheme, all self-employed individuals, including members of partnerships, must meet the below criteria:
• Currently be eligible for the SEISS (although they do not have to have claimed the previous grants) • Declare that they are currently actively trading and intend to continue to trade • Declare that they are impacted by decreased demand due to COVID-19 in the qualifying period. The qualifying period for the first grant is between 1 November and the date of claim The extension will provide two grants and will last for six months, from November 2020 to April 2021. As with the previous SEISS grants, the extended grants will be paid in two lump sum instalments, each covering a three-month period. The first grant will cover a three-month period from the start of November until the end of January. The taxable grant will cover 20% of the average monthly trading profits, paid out in a single instalment covering 3 months’ worth of profits, and will be capped at £1,875 in total. The second grant will then cover a three-month period from the start of February until the end of April, however there are no details as yet as to how much this will be, the level of the second grant will be set in due course. HMRC has advised that they will provide full details about claiming and applications in guidance on gov.uk in due course. As with the factsheet produced for the JSS, HMRC has also produced a basic factsheet on the extended SEISS.
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Deadline for applications to The Future Fund extended to 30 November 2020 28 September 2020
The Future Fund provides government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
As announced by the Chancellor on 20 April, the Future Fund issues convertible loans to innovative UK companies with good prospective, that habitually rely on equity investment and are currently disturbed by Covid-19. The scheme will assist these companies through the current period of economic disruption and also through the recovery, so that they are able to continue their growth trajectory and reach their full economic potential. The Scheme is designed by the Government and delivered by the British Business Bank. Details on how to apply can be found here. The scheme was due to close to new applicants on 30 September 2020; however the government has announced an extension to the Future Fund and it will now close for new applications on Monday 30 November 2020. It should be noted that only one application per Investee Company can be accepted by the Future Fund.
A business will be eligible if:
• It is UK-incorporated - if a business is part of a corporate group, only the parent company is eligible • It has raised at least £250,000 in equity investment from third-party investors in the last 5 years • None of its shares are traded on a regulated market, multilateral trading facility or other listing venue • It was incorporated on or before 31 December 2019 • At least one of the following is true:
- Half or more employees are UK-based - Half or more revenues are from UK sales
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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