Thursday, 26th November 2020
The government has released the full details of the third SEISS grant to support self-employed people affected by the coronavirus. The Self-Employment Income Support Scheme (SEISS) third grant continues to offer help to support those experiencing reduced demand due to COVID-19 but are continuing to trade, or temporarily cannot trade.
The rules on who is eligible to claim have changed. Here are the key points:
- You must have submitted a 2018/2019 SA return*
- Taxable grant worth 80% of three months average trading profits capped at £7,500
- Available for the self-employed or members of a partnership
- Consideration must be given to wider business circumstances
- Evidence to show impact due to COVID-19 is a requirement
- Available to anyone who was previously eligible for the SEISS grants
- Claim window opens 30th November 2020 until 29th January 2021
Not sure if you qualify?
This grant is only available for a limited time. 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 and the lockdown or Tier restrictions.
You are required to make an honest assessment about whether you reasonably believe that your trading profits will be significantly reduced due to coronavirus.
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 believe that you are eligible, log into your self-assessment account from 30th November and complete the initial eligibility checker. HMRC usually give an immediate response, however during busier periods they may notify you when you can make your claim.
There will also be a fourth grant covering the three-month period from February 2021 to April 2021. HMRC will release further details nearer the time.
Each grant payment covers a three month period and will be payable directly into your nominated bank account.
Taxable grant worth 80%
This grant payment is taxable and is subject to income tax and self-employed national insurance. You must report it on your 2020/2021 self-assessment tax return along with any of the other SEISS grants received, if applicable.
The grant is worth 80% of three months average trading profits.
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 of the overall payment and does not need to be repaid.
The government will review the level of the fourth grant and will release details next year.
Who can claim the COVID-19 Self-Employment Income Support Scheme (SEISS) third grant?
Per HMRC Guidance, to make a claim for the third grant, you must:
- be a self-employed individual or a member of a partnership. You cannot claim the grant if you trade through a limited company or a trust
- have traded in both the tax years 2018 to 2019 and 2019 to 2020.
For the third SEISS grant you must also:
- either be currently trading but are impacted by reduced activity, capacity or demand, or have been previously trading but are temporarily unable to do so due to coronavirus
- declare that you intend to continue to trade, and that you reasonably believe that the impact on your business will cause a significant reduction in your trading profits
- only claim if the reduction in profits is caused by reduced business activity, capacity or demand, or inability to trade due to coronavirus – reduction in profits due to increased costs (such as having to buy masks) does not count for this purpose.
When deciding whether the reduction is significant, you will need to consider your wider business circumstances. For example, if your business would normally be quieter during the winter months.
HMRC expect you. the claimant, to make an honest assessment about whether you reasonably believe that your trading profits will be significantly reduced compared to what you would otherwise expect to achieve during this period.
Your business must have been impacted on or after 1st November 2020. You must keep evidence to show the impact and reduction in your business activity across the qualifying period.
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.
Read our previous articles for further details on the original SEISS grants.
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 third grant will open on Monday, 30th November 2020. It will remain open until 29th January 2021.
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 providing an estimate of your entitlement.
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.
There are other support options in the form of Local Authority Grants and business support loans. If you do not qualify for the SEISS grant scheme then you may qualify for something else. Please get in touch and will help you find the right support package for your business.
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.
Keep up to date with the latest announcements by visiting our dedicated page https://onyx.accountants/covid/