Changes to the third and fourth SEISS grants

[Amended 23/10/20] The Self-Employment Income Support Scheme will now be extended from November 2020 to April 2021, but the scope of the scheme will be narrower and the third and fourth grants less generous.

The level of the third grant will be based on 40% of average trading profits, rather than the previously announced 20%, and will be capped at £3,750. The level of the fourth grant is to be kept under review and announced in due course.

Businesses temporarily unable to trade due to coronavirus were to be excluded from claiming the third and fourth grants but will now be eligible.

It remains the case that claimants must have been previously eligible for the first and second grant (although they do not have to have claimed the previous grants) and must declare that they intend to continue to trade and either:

• are currently actively trading but are impacted by reduced demand due to coronavirus, or
• were previously trading but are temporarily unable to do so due to coronavirus.
  

The scheme has not been extended to businesses that were not eligible for the first and second grants and information from 2019/20 returns will not be taken into account.

Claims for the second SEISS grant have now closed and HMRC has temporarily withdrawn guidance on the scheme while it develops guidance on the third and fourth grants.