Business

Rishi Sunak new winter economy plan: as stricter COVID-19 restrictions hit the nation: Self-employed? What you need to know

The chancellor announced his “winter economy plan” to the House of Commons, This outlined the SEISS Grant Extension provides critical support to the self-employed. The grant will be limited to self-employed individuals who are currently eligible for the SEISS and are actively continuing to trade but are facing reduced demand due to COVID-19. (Image credit: Rishi Sunak holds a Covid-19 Press Conference in 10 Downing Street. Picture by Pippa Fowles / No 10 Downing Street.)

The overall plan also included a new Job Support Scheme, where the government partially pays the wages of some workers, plus an extension of Bounce Back Loans. The VAT increase for the hospitality and retail sectors has also been cancelled, with all the new measures expected to be in place for the next six months.

In addition, the Government is continuing its support for millions of self-employed individuals by extending the Self Employment Income Support Scheme Grant (SEISS). An initial taxable grant will be provided to those who are currently eligible for SEISS and are continuing to actively trade but face reduced demand due to coronavirus. The initial lump sum will cover three months’ worth of profits for the period from November to the end of January next year. This is worth 20% of average monthly profits, up to a total of £1,875.

An additional second grant, which may be adjusted to respond to changing circumstances, will be available for self-employed individuals to cover the period from February 2021 to the end of April – ensuring our support continues right through to next year. This is in addition to the more than £13 billion of support already provided for over 2.6 million self-employed individuals through the first two stages of the Self Employment Income Support Scheme – one of the most generous in the world

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