Self-Employed Grant Increase
The Chancellor, Rishi Sunak, has announced that the amount of profit to be covered by the two Self Employment Grants for the quarters to 31 January 2021 and 30 April 2021 will be increased from 20% to 40% of profits.
The grants will be taxable and also subject to National Insurance contributions.
To be eligible to claim these grants, self-employed individuals, including members of partnerships, must: –
- have been previously eligible for the Self-Employment Income Support Scheme first and second grant (although they do not have to have claimed these previous grants)
- declare that they intend to continue to trade and either:
- be currently actively trading but impacted by reduced demand due to coronavirus or
- were previously trading but are temporarily unable to do so due to coronavirus
The first grant will cover the three-month period to 31 January 2021 and will amount to 40% of the average monthly trading profits for 2018/2019, paid out in a single instalment covering 3 months’ worth of profits and capped at £3,750 in total.
The second grant will cover the three-month period to 30 April 2021 and will amount to 40% of the average monthly trading profits for 2018/2019, paid out in a single instalment covering 3 months’ worth of profits and will be capped at a level, which has not yet been advised. The Government will review this and announce the maximum grant available in due course.
The Government has not yet issued guidance about how and when to claim these grants. We will confirm these details as soon as they become available.
The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.
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