The UK government has increased the level of financial support that is to be made available under the next phase of the self-employment income support scheme.

Self-employed workers impacted by coronavirus will be allowed a taxable grant worth 55% of average monthly profits covering the three-month period to the end of January.

The new grant rate is based on 80% of average profits for November, 40% for December and 40% for January. It will be paid out in a single instalment and will be capped at £5,160.

Another grant for self-employed workers will cover the three-month period to the end of April, but payment rates have not been finalised yet

When this phase of the scheme was originally announced in September, grants were to cover 20% of profits. This was doubled in October as part of a revised package of COVID-19 schemes, and then was increased further this week after new coronavirus restrictions were announced.

Another grant for self-employed workers will cover the three-month period to the end of April, but payment rates have not been finalised yet.

Meanwhile, the UK government has extended the deadline for applying for the bounce back loan scheme by two months to 31 January 2021. Also, businesses that have already availed of the loan, but borrowed less than their maximum rate (25% of turnover), will be able to top up their existing bounce back loan from next week.