Changes to support scheme for the self-employed announced

The Chancellor announced changes to the Self-employed Income Support Scheme (SEISS) today, to some degree mirroring the amendments to the furlough scheme:

The SEISS will now run for another three months. Applications for the ‘First Grant’ of up to £7,500 must be made by close on 13 July 2020. For the ‘Second and Final Grant’, applications will open “in August”. There is no automatic second payment to those who claimed the first grant. Eligibility criteria will remain unchanged and it will be possible to claim only for the second grant.

In line with the reduction in the furlough scheme, the second grant payment will be limited to 70% of average monthly profits, subject to a maximum payment covering three months of £6,570.

The issue of shareholder directors who draw remuneration via dividends remains the subject of much lobbying and was not addressed in the latest announcement from the Chancellor.