If you are self-employed, you may be aware of the Self-Employment Income Support Scheme (SEISS) grant. Applications for the fifth (and final) grant are currently open but will close on 30 September 2021. If you are eligible to receive the grant and have not yet completed your application, now is the time to act. This article provides the key information you need to know about the grant.
When can I apply for the fifth SEISS grant?
If you are eligible for the grant, you may have been contacted about your personal claim date or asked to provide further information to the government about your eligibility. Claim dates have been staggered to allow a smooth process, but with the grant closing at the end of September, you should apply as soon as possible if you have not done so already.
Am I eligible to claim the fifth SEISS grant?
Eligibility for claiming the fifth SEISS grant is the same as it was for claiming the previous years. To make a claim, you must be self-employed or a member of a partnership.
The other requirement is that you must also have traded in the 2019-20 tax year and completed a tax return on or before 2 March 2021. You must also have traded in 2020-21.
In addition, one of the following must apply to you:
- You are currently trading, but you have been impacted by reduced demand because of the COVID-19 pandemic.
- You have been trading, but you are temporarily unable to do so because of the COVID-19 pandemic.
HMRC will look at your self-assessment tax return from 2019-2020 to assess whether you are eligible for the grant. It’s also noteworthy that your trading profits cannot be above £50,000 and must be at least equal to your non-trading income.
If there are circumstances due to which you are not eligible based on your 2019-20 tax return, the HMRC will have to look at your tax returns for the years 2016-17, 2017-18, 2018-19, and 2019-20.
Making declarations about your situation
During the process of submitting your application, you will be asked to make certain declarations about your current situation. These are:
- That you intend to continue to trade.
- That you have a reasonable belief that you will suffer a significant reduction in your trading profits. This reduction must be due to reduced capacity, business activity, ability to trade or demand for your product or services because of the Covid-19 pandemic for the period of May 2021 to September 2021.
How much can I claim for the fifth SEISS grant?
The amount of the fifth grant will be determined by how much your turnover has been reduced in the year starting April 2020 and ending April 2021.
If your turnover was reduced by 30% or more in the year April 2020 to April 2021, you will be eligible to receive 80% of your average trading profits for a period of three months up to a maximum value of £7,500.
If your turnover was reduced by less than 30% in the year April 2020 to April 2021, you will receive 30% of three months’ average trading profits up to a maximum value of £2,850.
Check if you can claim a grant through the Self-Employment Income Support Scheme here.
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This is not legal advice; it is intended to provide information of general interest about current legal issues.