For the second time this week, Jack and I write with a further update to our blog on the Government support available for the 4-week lockdown…but this time we report on self-employment support. It has been announced yesterday afternoon that self-employed individuals will now receive 80% of their usual trading income for November (rather than 40%). We understand the rate will revert back to the previously-reported 40% for December and January, which is effectively 55% over the whole 3 month claim, to a maximum of £5,160.
The claim is still based on average earnings from last year to cover a period of three months and does not apply to the newly self-employed.
The grant will be paid faster than last time – the claims window opens on 30 November rather than the middle of December as previously announced.
A fourth grant is available between February and April 2021, but the details on this are still to be decided.
Leon and Company’s View
Although this increase is welcome, we are still disappointed to note that only people eligible for the first two grants are able to apply for this third grant – meaning this excludes the newly self-employed. Moreover, we are also disappointed that there is no recognition of those freelancers and directors of limited companies drawing their main income via dividends…and as widely reported in the press, this leaves 2.9 million still excluded. The main route that directors can access support is via the bounce back loan, the “local restrictions support grant”, and a furlough claim based on their own director’s salary. Please see our previous bog for more details on this.
In the meantime, you can rely on us to update you as new announcements are made. Please continue to stay safe in these challenging times.