Taxi drivers and other self-employed workers are gearing up to make their second, and final, Self-Employed Income Support Scheme (SEISS) payment claim when the system opens on Monday 17 August.
The payment comes as self-employed workers struggle across most industries to recover from the effects of the coronavirus pandemic.
Workers eligible for the first grant had until 13 July to claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible had the money paid into their bank account within six working days of completing a claim and covering the impact of COVID-19 during the months of March, April and May.
Applications for the second grant will open on 17 August. This time individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
Taxi drivers and other motorists still struggling with the financial effects of COVID-19 can now also take a further 3-month payment break on vehicles according to new Financial Conduct Authority (FCA) guidance. Cab drivers will no doubt welcome the extra support measures now available for users of motor finance, buy-now pay-later and rent-to-own, who continue to face payment difficulties due to coronavirus.
As part of the new guidance released by the FCA, taxi drivers can extend their payment break by a further 3 months until 31 October and the ban on repossessions will also continue until the end of October.
Christopher Woolard, Interim Chief Executive at the FCA, said: “Our measures will ensure that people who are still facing temporary payment difficulties because of this pandemic, continue to have access to the help they need. However, if you can afford to start making repayments, you should.”
TaxiPoint recently surveyed taxi drivers on social media, asking whether they think they will need further government financial support to run their business after the second and final SEISS payment lands. Of the 412 taxi drivers who took part in the poll, 95% responded stating they need further help.