Is the self-employed government grant scheme going to get extended like furlough to October?

MILLIONS of self-employed workers are relying on the government to cover their income during the coronavirus crisis.

The chancellor Rishi Sunak tonight confirmed that the scheme will be extended for three more months.

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What is the scheme?

Under the self-employment income support scheme (SEISS) self-employed workers can claim up to £7,500 to help cover costs if they're unable to work because of the pandemic.

Chancellor Rishi Sunak launched the initiative after the government promised similar help for PAYE workers through the furlough scheme.

The self-employed grants opened on May 13 and by midnight on May 24, a total of 2.3million self-employed workers had claimed cash worth £6.8billion.

Only those who made less than £50,000 a year in profit between the 2016 and 2018 tax years are eligible to claim the funds, and payments are based on 80 per cent of your average earnings - up to £2,500 a month - over this period, including losses.

But the scheme has been criticised for excluding limited company directors.

Those who've applied for the emergency cash should have already received the lifeline.

When does SEISS end?

The first SEISS covers three month's worth of income paid in one lump sum.

This emergency cash covers wages in March, April and May.

The chancellor has now extended the scheme for three more months - so until the end of August.

Is there any change to the scheme?

Workers will get less cash this time, the grant has been reduced to 70 per cent - to a maximum of £6,750.

You don't have to have claimed the first grant - but can get both.

The second grant will open in August for applications.

What other help is there for self-employed workers?

The government has also introduced the following measures to help self-employed workers and businesses during the coronavirus outbreak:

• Income-tax deferrals: Self-assessment income tax payments, that were due in July, can be deferred to the end of January next year.
• Rent support: Businesses who are struggling to pay their rents are protected from eviction until the end of June.
• Coronavirus business interruption loan scheme: SMEs can get loans and overdrafts of up to £5million for up to six years and the government will guarantee up to 80 per of these.
• Grants of up to £10,000: Small firms can get grants of up to £10,000 to help with ongoing business costs.
• VAT payments: VAT payments can be deferred for three months.
• Tax bill help: SMEs that cannot afford their tax bills can ask HMRC for a “time to pay” arrangement so any debt collection is suspended.
• Business rates holiday: A 12-month business rates holiday has been introduced for many businesses.

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If you're still struggling to make ends meet during the coronavirus outbreak, you can ask for a three month repayment holiday on things such as your credit card and personal loans.

You can also ask for a repayment holiday on your mortgage, which you may be able to take for longer if necessary.

But you should be aware that taking a payment break could stop you from getting a mortgage in the future, even if it doesn't affect your credit score.