40% Grants for self-employed
The government today announced Grants as their latest measures to improve the winter support schemes. These are available to taxi drivers and other self-employed workers. The purpose of the scheme is to support them during the difficult times over the coming months.
The Chancellor said he would be increasing support. It will be through the existing Job Support and self-employed schemes. Business grants will continue to support companies in high-alert level areas. This builds on agreements reached with Local Authorities.
What did the Chancellor of the Exchequer Rishi Sunak say?
As the situation evolves we must be ready to adapt our financial support. This is what we are doing today – said Chancellor of the Exchequer Rishi Sunak. These changes mean that our support will reach many more people and protect many more jobs.
“I know that the introduction of further restrictions has left many people worried. People worried for themselves, their families and communities in these situations. I hope the government’s stepped-up support can be of help in the coming months.”
What is the increase?
For taxi drivers and other self-employed today’s announcement should give some relief. The increase is from 20% to 40% of the profits. This means that the grant will increase from £1875 to £3750 max.
The grant is worth £3.1 billion to support the self-employed. This grant should help them through November to January. A further grant will follow covering from February to April 2021.
As a result, the government will provide two taxable SEISS grants. These grants are to support those experiencing reduced demand due to COVID-19. Yet, they are continuing to trade, cannot trade for some time.
The grant will be available to anyone who was eligible earlier for the SEISS grant one and grant two. They should meet the eligibility criteria.
How and when the payment will be made?
Grants paid in two lump sum instalments each covering 3 months. The first grant will cover a three-month period. It will start from the beginning of November 2020 until the end of January 2021. It is a taxable grant calculated based on 40% of three months’ average trading profits. This grant paid out in a single instalment and capped at £3,750.
The second grant will cover a three-month period from the start of February until the end of April 2021. The government will review the level of the second grant and set this in due course.
The increase is seen as a starting point in helping taxi drivers. They have faced a severe downturn in work levels.
Taxi association representatives have requested the financial firms and the government for help. They have requested to reintroduce payment holidays on taxi monthly instalments. This measure will help the taxi drivers through difficult times.
Steve McNamara, General Secretary of Licensed Taxi Drivers’ Association (LTDA) told members:
“We have been calling for their support for weeks and are happy to see that they are finally listening.
“We know this won’t solve all the challenges members are facing, but hope it’s a start. Over the next few weeks, we will be keeping the pressure up to help get you the extra support you need. Whether that’s further help from finance companies or more financial support. As new Tier-2 restrictions continue to limit trade.”