The fifth SEISS (Self-Employed Income Support Scheme) grant application has been announced by the government. Eligible participants will be contacted through text, email, letter or through SEISS government portal informing when and how to apply.
This is to be the final support self-employed grant to be made available to the public to help through the loss of profits caused by the COVID-19 pandemic. Information on the fifth SEISS grant and how people can claim was previously intended to be published in late June 2021, however it was delayed until July 2021.
To coincide with the announcement of details for the fifth SEISS grant, HMRC have also provided an explainer video clarifying eligibility and how much you will be entitled to. As well as this, HMRC have also announced a series of live webinars which will deliver an overview of the fifth grant including how to claim and other support available. The free webinars are scheduled to take place on Tuesday July 20th 2021, Wednesday July 21st 2021, Tuesday July 27th 2021 and Wednesday July 28th 2021.
Here’s all you need to know on the fifth SEISS grant:
What Is The Fifth SEISS (Self-Employed Income Support Scheme) Grant?
The fifth SEISS grant is said to be the last in a series of government payment schemes worth up to £7,500, made available to support eligible self-employed individuals through the pandemic. The UK Government has paid out over £25.2billion in financial support to approximately 2.9million self-employed individuals whose business has been affected by COVID through the SEISS scheme. Around 600,000 people are eligible for the fifth SEISS grant, the same figure eligible for the fourth SEISS GRANT.
HMRC will determine an individual’s eligibility based on their 2019/20 and 2020/2021 self-assessment tax returns. If eligibility isn’t determined by this, HMRC may then choose to look at other tax years, starting from 2016-17.
The fifth SEISS grant is slightly different to previous grants in that business turnover will be drawn upon by HMRC in order to work out the correct grant amount.
A self-employed individual’s turnover considers earnings, fees, sales or money earned or received by the business. Each self-employed person will need to work out their turnover for in a 12-month period starting between 1st April 2020 and 6th April 2020 as well as the same for either 2019/2020 or 2018/2019. HMRC will then calculate the grant amount figure based on the information submitted. If you hadn’t started trading in 2019/2020 or were dormant in the tax years of 2018/2019, 2017/2018 or 2016/2017 then this information won’t be needed by HMRC.
Who Can Apply For The Fifth SEISS (Self-Employed Income Support Scheme) Grant?
In order to be eligible for the fifth SEISS grant, you must be a self-employed individual or member of a partnership and to have traded in both the 2019/20 and 2020/2021 tax years. You must also have:
- submitted your 2019 to 2020 tax return on or before 2nd March 2021
- trading profits of no more than £50,000
- trading profits at least equal to your non-trading income
Unlike other SEISS grants, there will be two levels of the fifth SEISS grant with alternative criteria. If a self-employed individual’s turnover is:
- Down by 30% or more they will receive 80% of three months’ average trading profits (capped at £7500)
- Down by less than 30% they will receive 30% of three months’ average trading profits (capped at £2850)
If in the circumstance HMRC don’t require turnover figures, the individual will receive 80% of three month’s average trading profits (capped at £7500). Once an application is made, HMRC are expected to process payments within a few days of the successful application.
How To Apply For The Fifth SEISS (Self- Employed Income Support Scheme) Grant?
The online service government portal to apply for the fifth SEISS grant will be made available by HMRC in late July 2021. HMRC will contact you if you’re eligible for the fifth SEISS grant in mid-July 2021 to inform you of the criteria and any other information which will need to be submitted. The deadline to make a claim for the fifth SEISS grant is 30th September 2021.
We hope this has outlined to you exactly what the fifth SEISS (Self-Employed Income Support Scheme) grant is, who is eligible and how to apply. If you require any more information on any government COVID-19 loans, grants and schemes, or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.
