Friday, 23rd October 2020, updated 5th November 2020
The government has announced that it will make available an SEISS Grant Extension to help support those experiencing reduced demand due to COVID-19 but are continuing to trade, or temporarily cannot trade.
- Taxable grant worth 80% of average monthly earnings capped at £7,500 in total
- Available for the self-employed or members of a partnership
- Available to anyone who was previously eligible for the SEISS grants
Not sure if you qualify?
These grants are only available for a limited time, and you could be eligible for a sizeable grant to help you and your business during these unprecedented times. Contact us now to find out how much you could be entitled to.
Self-Employment Income Support Scheme
The SEISS Grant – How it works
If you have been adversely affected by the coronavirus then you should consider this grant.
It is specifically for self-employed individuals or members of a partnership whose trade has been affected by COVID-19. Your trade may have been adversely affected or you may have had to temporarily stop working due to COVID-19.
You can continue to work if you receive the grant, you can also start a new trade or take on other employment including voluntary work and duties as a military reservist.
If you are eligible HMRC will notify you when you can make your claim.
Each grant payment covers a three month period and will be payable directly into your nominated bank account.
When are the grants available from?
The first grant will cover a three-month period from
….. the start of November 2020 until the end of January 2021.
The second grant will cover a three-month period from
….. the start of February until the end of April 2021.
Taxable grant worth 80%
Each grant payment is taxable and they are both subject to income tax and self-employed national insurance.
The first grant will be worth 80% of average monthly trading profits for a three-month period. This is double the amount that was announced in the Winter Economy Plan.
The turnover limit of £50,000 still applies and if eligibility is not met based on the 2018/2019 tax year then HMRC will review the previous tax years instead.
The grant is capped at £7,500 for the total payment and does not need to be repaid.
The government will review the level of the second grant and set this in due course.
Who can claim?
Eligibility for these grants is the same as the previous ones. Read our previous articles for further details.
The grants are available to anyone who was previously ‘eligible’ for the SEISS grant one and grant two, and meets the eligibility criteria. However they do not need to have claimed either of the previous grants.
Eligible individuals must have traded in the 2018/2019 tax year and submitted a self-assessment tax return on or before 23rd April 2020. You must also have traded during the 2019/2020 tax year and intend to continue to trade during the 2020/2021 tax year.
Individuals, including members of a partnership, must declare that they intend to continue to trade and either:
- are currently actively trading but are impacted by reduced demand due to coronavirus; or
- were previously trading but are temporarily unable to do so due to coronavirus
In the event that HMRC decide that you are not eligible, contact us as we can review prior year returns and accounts in detail to help with your appeal.
The claim window for the first grant will open on 30th November 2020. We will provide an update on the second grant once the date has been made available.
Individuals must make the claim themselves; an agent cannot do it for you.
It is important to inform your agent that you have made a claim as this information must be entered on your self-assessment tax return.
Guidance and support
We cannot make the claim for you, however we can talk you through the process and provide you with an estimate of how much you should be entitled to.
If you think that you may be eligible to make a claim for the extended grants but are not sure what to do then contact us now.
Anyone can check if they qualify and you will get an instant response by using HMRC’s eligibility checker.
GET IN TOUCH WITH ONYX
Unsure of how much grant you may be entitled to or need help with managing the grant once received?
Contact us now or e-mail us at firstname.lastname@example.org for a FREE no obligation consultation.
Got any questions or queries? Our friendly team of tax specialists are happy to help. Just drop us a line! Call us on 0121 753 5522 or 01902 759 800.
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