Last self-employed grant opens
The fifth, and probably final, SEISS support grant (for self-employed workers) will be available from late July. This time, the amount of grant paid is dependent on the reduction in your turnover.
The four previous SEISS grants were paid if there was a significant reduction in trading profits. For the fifth grant, the full amount will only be paid if your turnover for the 12 month period of April 2020 to April 2021 has reduced by 30% or more. If so, you will receive 80% of three months’ average trading profits, subject to a maximum grant of £7,500. If the reduction is less than 30%, the grant will only be 30% of three months’ average trading profits, with a £2,850 maximum.
The turnover period can start on any day from 1 April to 6 April 2020, although it will normally be turnover reported on your 2020 tax return that will be used to establish the amount of reduction. This could create a mismatch. Any Covid support payments should be excluded from turnover.
As for previous SEISS grants, your trading profits must not exceed £50,000, and your non-trading income, such as employment, pensions or rentals, shouldn’t exceed your profits. HMRC will initially run a test for 2019/20, but, if this fails, they will look at an average for the four years 2016/17 to 2019/20.
You must have traded in the tax years 2019/20 and 2020/21, with the tax return for 2019/20 submitted by 2 March 2021. Moreover, you must either be currently trading, but suffering reduced demand due to Covid-19, or have been trading but are temporarily unable to do so due to Covid-19. There must also be a significant reduction in your trading profits for the period May to September 2021 due to reduced business activity, capacity or demand.
You must make your claim on or before 30 September, so if you need any assistance please let us know.