The full details for the third grant for Self-Employment Income Support Scheme (SEISS) have now been published by HMRC and they have changed compared to the first two grants.
This grant offers 80% of three months’ average trading profits, capped at £7,500, covering the period from 1st November 2020 to 29th January 2021 and you will be able to make a claim from now to 30th January 2021.
To be eligible for the grant you need to meet the following criteria –
- Be a self-employed individual or a member of a partnership, you cannot claim if trade through a limited company or trust.
- Have traded in both the 2018/19 and 2019/20 tax year.
- Either be not trading due to the Coronavirus, or currently trading but impacted by reduced activity, capacity or demand.
- Declare you intend to continue to trade and reasonably believe your business will result in a significant reduction in trading profits.
- Only claim if the reduction in profits is caused by reduction in business activity, capacity or demand, or inability to trade. A reduction in profits due to increased expenses, such as masks and cleaning products, does not count for this purpose.
HMRC expect all claimants to make an honest assessment whether they reasonably believe their trading profits will be significantly reduced compared to normal in this period. Claimants will also be required to keep evidence to show the impact and reduction in business from 1st November 2020 to 29th January 2021 and subsequently the accounting year as a whole.
As with the last two grants the individual will have to make the claim, we are unable to do this as your agent. Also like the previous two grants these amounts will be included on your 2020/21 tax return and be subject to income tax and self-employed national insurance.
For full guidance regarding the third SEISS grant please go on the following link Check if you can claim a grant through the Self-Employment Income Support Scheme – GOV.UK (www.gov.uk)
Please note there will be a fourth grant covering February 2021 to April 2021, more details will follow on this closer to the time.