Can't wait for the Self-employed Support Scheme? | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 26/03/2020

What is the Self-Employed Income Support Scheme?

The Self-Employed Income Support Scheme (SEISS) is a UK Government grant available to the self-employed that have had their income disrupted due to the Coronavirus pandemic.
It has been extended to give two further grants to the self-employed, with each grant lasting for three months. These cover the periods of November 2020 to January 2021 and February 2021 to April 2021.

Who is eligible for SEISS?

Those who are self-employed or members of a partnership are eligible for SEISS if they qualified for the first two rounds of grant payments under the scheme and intend to continue to trade in the future. They will either be unable to trade or have had their income reduced due to Coronavirus.

How will the new SEISS payments work?

There will be two payments made between November 2020 and April 2021. The grants are taxable and subject to National Insurance contributions. The third grant payment will be calculated using 80% of three months’ average monthly profits during trading. This is capped at £7,500 for a three-month period. The value of the fourth grant for the period between February and April 2021 is yet to be announced.
The grant for the period of November 2020 to February 2021 will open for applications from 30 November 2020.

What to do if you do not quality for SEISS

Apply for universal credit

You can receive a monthly payment of least £251 for a single person under 25 and up to £498 in total for a couple where at least one of you is over 25. You can receive extra money for up to two children only. Find out what you are entitled to under universal credit.
You may also be eligible for help with housing costs. Universal credit applications can take up to five weeks to process, but you can claim for an advance payment and you will usually get a decision on the same day. This advance is a loan, without interest and you will then pay it back over 12-months.
If you already receive working tax credit and decide to apply for universal credit, you will not be able to go back to this once you have made a universal credit claim (unless you get the severe disability premium). You may find that this is less generous than what you had originally claimed under the working tax credit scheme.

Apply to the Coronavirus Business Interruption Loan Scheme

If you have a turnover of at least £100,000 or have wage costs of £12,500 or greater, you can apply for a business interruption loan. Loans are available up to £5m over six years with a 12-month interest holiday. Find out if the CIBLS will help your business.

You can also access overdrafts, asset finance and invoice finance through this scheme.

Get paid faster and improve cashflow with invoice finance

Invoice finance allows you to receive funds of outstanding invoices when they are issued, meaning you get paid faster. Invoice finance lenders will give a percentage value of invoices raised.

 

Speak to an invoice finance broker

Find out if your business would benefit from invoice finance and how much cash you could release.

Make sure you received your £10,000 Small Business Grant

This £10,000 grant was available to those who rent or own a rateable property and receive small business rate relief (SBRR) or rural rate relief (RRR) in England. The scheme closed on 5 October 2020. The scheme operates across the UK but is managed slightly differently in each country of the UK. 

Read more about the grants available to small businesses impacted by Coronavirus.

Use your personal credit or savings

As a last resort you may decide to use your personal savings or to borrow using your own personal credit. This could include 0% credit cards or taking out a remortgage or additional lending against your own home.

Consider financial advice

Find a qualified, independent and regulated financial adviser in your area to help you make the right decisions about your financial future. A free service, quickly connect to over 27,000 experts with the help of Unbiased.co.uk. 

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

man doing diy

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy