HMRC have now published full details of the fifth Self-employment Income Support Scheme (SEISS) grant, including a new turnover test which determines the level of the grant.
The key change from the previous SEISS grant is that the level of the grant depends on whether turnover has dropped by more or less than 30%.
For those whose turnover has reduced by 30% or more, the grant is 80% of three months’ average trading profits, capped at £7,500. Those with a turnover reduction of less than 30% will receive a grant based on 30% of three months’ average trading profits, capped at £2,850.
To be eligible for the grant, an individual must:
- be self-employed or be a member of a partnership
- have traded in the 2019/20 tax year
- have submitted their tax return on or before 2 March 2021
- have traded in the 2020/21 tax year
Individuals must be currently trading but be impacted by reduced demand due to coronavirus (COVID-19), or have been trading but are temporarily unable to do so due to COVID-19.
Claimants will need to provide two turnover figures during the claims process: one from the pandemic period and an earlier reference period.
The online service to claim the fifth grant will be available from late July 2021.
You must make your claim on or before 30 September 2021.
For more information, see HMRC’s website.
“Since we already know HMRC are cracking down on fraudulent claims of the previous SEISS grants, it is important to ensure that you qualify for the fifth grant before applying for it. They have implemented a new system to allow individuals to calculate what they are entitled to, this will reduce the amount of people falsely claiming.”Nigel Holland