The third SEISS grant has now opened for applications, after Chancellor Rishi Sunak announced earlier this year the scheme would be extended. In total two more SEISS grants will cover November 2020 to April 2021, and each grant will cover three-month periods.
What is the SEISS third grant worth?
The third SEISS grant has been subject to several changes in light of the second national lockdown in England throughout November.
David Gibb, financial planner at Quilter, told Express.co.uk: “The Government’s income support packages have provided a financial lifeline for many struggling as a result of the pandemic, and will no doubt continue to act as a safety net over the difficult winter period.
“The Government has extended the SEISS for the winter with a further two taxable grants.
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“The first covers the three-month period from the start of November until the end of January and will cover 80 percent of average monthly trading profits, up to the cap of £7,500.
“Bear in mind that most these grants are taxable, and are subject to the usual National Insurance contributions.
“This is far more generous than what the government previously announced, as Mr Sunak was initially prepared to cover only 20 percent of average profits, up to a cap of £1,875.”
Applications for the third SEISS grant must be made on or before January 29, 2021.
Also, any money from the scheme is taxable, which means claimants may have to pay more tax.
Self-employed individuals and members of partnerships must have traded in both the 2018 to 2019 tax year and the 2019 to 2020 tax year to claim SEISS.
Claimants must have submitted their Self Assessment tax return on or before April 23, 2020 for the 2018 to 2019 tax year.
Claimants must also be currently trading but impacted by reduced demand due to coronavirus, or have been trading but are temporarily unable to do so due to the pandemic.
Claimants must also declare that they “intend to continue to trade”, and that they “reasonably believe” there will be “significant reduction” in trading profits.