Posted: Mon 2nd Nov 2020
The third grant for the Self-employment Income Support Scheme will open for claims from 30 November with recipients receiving 80% of average trading profits for November, up from the original 40%.
The news follows the announcement by prime minister Boris Johnson that England will enter a second lockdown on 5 November due to the continuing impact of coronavirus.
Applications will open on 30 November, earlier than the original date of 14 December.
As SEISS grants are calculated over three months, the increase for November to 80% and the 40% level of trading profits for December and January, means the total level of the third grant is 55% trading profits. The maximum grant will increase from the previously announced £3,750 to £5,160.
The government said the change is "broadly equivalent support" for the self-employed as provided to employees through the Coronavirus Job Retention Scheme, which has been extended until 2 December, and the Job Support Scheme which will take over after that.
To be eligible for the third SEISS grant, self-employed people must have been previously eligible for the Self-Employment Income Support Scheme first and second grant and declare that they are suffering reduced demand due to COVID-19 or were previously trading but are temporarily unable to do so.
Coronavirus Job Retention Scheme extended
The CJRS was due to end on 31 October but it has now been extended to cover the lockdown period. Eligible employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. Employers need to cover National Insurance and employer pension contributions.
Claims can be made from next week with the exact day still to be confirmed. As before, grants will be paid within six working days.
Coronavirus loans extended
Businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) through the Bounce Back Loan Scheme can top-up their existing loan with more funding from next week.
Grants for closed businesses
Businesses in England that are forced to close due to national or local restrictions will receive up to £3,000 per four weeks. Local authorities will also receive one off funding of £1.1bn to support businesses at their discretion. Some of this funding has already been provided to local areas that entered into Tier 3.
Businesses in hospitality, leisure and accommodation sectors that have been suffering from reduced demand for a while in tier 2 and 3 areas will receive backdated grants at 70% of the value of closed grants up to a maximum of £2,100 per four weeks.
The government will provide the funding to local authorities this week.
Stay up-to-date with the latest coronavirus support information
We will keep you updated on the latest information on how to access the government's coronavirus business support, so keep an eye on this post. You can also find details on Enterprise Nation's coronavirus business advice hub and by following Enterprise Nation on Twitter.