When and the place can the brand new 80% self-employment grant be utilized for?
Rishi Sunak has announced that the third self-employed income support grant will increase to 80 percent of profits from November through January.
The next self-employed grant is capped at £ 7,500 per person based on average trading profit.
The online service for the next independent scholarship will be available on the GOV.UK website from November 30th.
> See also: The Self-Employed Income Support Scheme (SEISS) is to be doubled for November
The self-employed allowance is taxable and is also subject to social security contributions.
The government has already announced that there will be a fourth grant for February through April 2021, the amount of which has yet to be announced.
Universal Credit U-Turn
The government has also extended the suspension of the minimum income floor, a rule within the universal credit system that limits self-employed payments to the equivalent of what you get if you work full-time on the minimum wage but still make claims.
The Treasury Department said the cost of self-employed support would be up to £ 7.3 billion, of which £ 2.8 billion was new money for the third self-employed grant.
Who else is excluded from the independent scholarship?
However, swaths of self-employed – calculated at 690,000 people – are still excluded from support, either because they are new self-employed or are business leaders, or because they earn more than £ 50,000 from self-employment, and people who earned less than half their self-employed income .
Derek Cribb, executive director of the Association of Independent Professionals and the Self-Employed (IPSE), told the Financial Times that there were still "devastating gaps" in SEISS.
Cribb said, "Now the directors of the limited liability company and other foreclosed self-employed who have made it with their savings will face financial disasters if they are not assisted with this second lockdown."
For example, the Institute for Fiscal Studies estimated that one in five people who were self-employed as at least half of their income were excluded from the Self-Employed Income Support System (SEISS).
For those with a self-employed income, but less than half, that figure rose to 38 percent.
Paul Johnson, director of the Institute for Fiscal Studies, told the Times, “We know that the self employment program has overcompensated for many while others have been totally uncompensated. It is quite surprising to continue with such a scheme, which quickly came up with without seriously trying to fix its shortcomings. "
The Institute of Directors asked the Treasury Department to provide community grants to small business directors.
Tom Waters, a senior research economist at IFS, told the Financial Times that while it was difficult to rescue all self-employed, “the inadmissibility of others – those who get less than half their income from self-employment or who have profits over £ 50,000 – is a specific political choice. "
Sunak extends across the UK through March 2021