On 5 November 2020, the UK government announced the third Self-Employment Income Support Scheme (SEISS) grant to cover the period 1 November 2020 to 31 January 2021.

The Government will provide a taxable grant calculated at 80% of 3 months average monthly trading profits (over the last 3 tax years), paid out in a single installment and capped at £7,500 in total. This is an increase from the previously announced amount of 55%.

The grants are subject to tax and National Insurance contributions and self-assessed tax owed by self-employed workers can now be deferred to January 2022.

Self-employed individuals or members of partnerships who were previously eligible for the first and second SEISS grants and have declared that they intend to continue to trade are eligible (although it is not necessary to have claimed under the first two grants provided by SEISS).

However, individuals must now declare not just that their business has been adversely impacted, as before, but that they have been impacted by “reduced demand” because of COVID-19. This is a higher threshold than before, and accordingly, adverse effects from COVID-19, such as having to shield or self-isolate, etc., will not trigger eligibility under the revised SEISS.

Additionally, as before, those who claim under SEISS must have trading profits of £50,000 or less, derive at least 50 percent of their income from self-employment and have filed a tax return for the 2018/19 tax year.

Furthermore, a fourth grant has been announced to cover the period from 1 February 2021 to 30 April 2021, although the percentage of the grant has yet to be announced.