The Chancellor has today announced an extension to the self employed income grant with applications open from August 2020

During today’s Downing Street briefing the Chancellor has announced an extension to the Self Employed Income Support Scheme. Applications can be made from August 2020. The grant will work the same as the original grant with a single payment covering 3 month of average earnings however the rate has been reduced to 70% of profit (from 80% for the first grant payments).

With this extension self employed people affected by coronavirus will now be able to access grant funding to cover profits for 6 months from 1 March 2020 to 31 August 2020.

The extension is a separate but similar application. You will not automatically qualify if you have already made the first application and you will need to do a second application confirming you are still affected by coronavirus.

During his speech the chancellor also mentioned the frustrations of business people who have missed out on the grants and this could be because of low historic business profits, other income in excess of business profits or income in the form of dividends. He has confirmed that while Government is sympathetic towards those affected no additional help will be available as they will have been able to benefit from business funding, tax deferments and potential benefit payments. Whilst it may be true, businesses who qualify for the grants can also access these and the system has missed help for a lot of small businesses that will struggle to survive.

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This article is published for information only. It provides only an overview and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the above can be accepted by the author or the firm.