Budget 21 – Self-employment income support scheme

The Chancellor announced an extension to the grant scheme for the self-employed called the self-employment income support scheme (SEISS).

There has been 3 grants awarded to date. 

The fourth SEISS grant will be worth 80% of three months’ average trading profits, paid out in a single instalment and capped at £7,500 in total. The grant will cover the period February to April 2021, and can be claimed from late April 2021. Self-employed individuals must have filed a 2019/2020 self assessment tax return to be eligible for the fourth grant.

This means that over 600,000 individuals may be newly eligible for SEISS, including many new to self-employment in 2019/2020. 

The government announced that there will be a fifth and final SEISS grant covering May to September 2021. The value of the grant will be determined by a turnover test, to ensure that support is targeted at those who need it the most as the economy reopens.

People whose turnover has fallen by 30% or more will continue to receive the full grant worth 80% of three months’ average trading profits, capped at £7,500. People whose turnover has fallen by less than 30% will receive a 30% grant, capped at £2,850. The final grant can be claimed from late July 2021.